Nvidia The company will release its quarterly results after the market closes this Wednesday (November 19). The importance of Nvidia's earnings report to the market is self-evident.
A research report released by Citigroup on November 10th maintained its "buy" rating on Nvidia stock and raised its target price from $210 per share to $220 per share. This report directly addresses investor concerns about the "overheated" AI capital expenditure. Analysts Atif Malik and Papa Sylla pointed out in the report that while there are doubts about the source of funding for AI investment, a more fundamental fact is that AI chips are facing challenges due to limited capacity in CoWoS (Co-Wall-In-Size) packaging. Supply will remain below demand until 2026.
Citigroup suggests that Nvidia's stock price remains attractive at current levels. The report states that Nvidia's current price-to-earnings ratio is approximately 28, compared to its AI peer Broadcom. Its valuation is more advantageous, at 38 times that of AMD and 37 times that of AMD.
Last Friday, Nasdaq The index fell as much as 1.9% during the session, but quickly recovered its losses and ultimately closed up 0.1%.
Nvidia's stock price barely closed higher last week, providing a relatively flat start to its earnings report to be released this Wednesday.
Meanwhile, companies involved in recurring transactions related to OpenAI are facing significant declines. Oracle Data center stock price fell more than 9% last week Cloud service provider CoreWeave plunged nearly 30%.
US tech media outlet The Verge has previewed an upcoming investigative report describing AI infrastructure provider CoreWeave as "at the heart of the AI bubble," questioning its business model and heavy reliance on Nvidia. The report emphasizes that CoreWeave would be virtually unable to operate without Nvidia's massive funding and hardware support, and raises questions about the sustainability of its model in the face of fluctuating AI demand.
Over the past week, investors have been debating whether the AI bubble has already begun to burst.
Mohamed El-Erian, chief economic advisor at Allianz Group, said the market is experiencing a “rational bubble.” While the total value created is enormous, making it seem reasonable for investors to “overinvest” due to the huge returns, it also has a darker side: “there will be tears” and losses.
JPMorgan Chase Mary Callahan Erdoes, CEO of Asset & Wealth Management, stated at a forum that investors should pay attention to artificial intelligence. She emphasized the future opportunities that artificial intelligence brings, rather than dwelling on whether there is a bubble in the present. She stated that artificial intelligence is bringing opportunities that are not yet fully recognized and understood.
(Source: Securities Times) (Times)
