Why Today Could Be AI's Stock Bubble Peak
Date
2/20/2024 10:18:05 AM
(MENAFN- Baystreet)
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Chris La - Tuesday, February 20, 2024
Why Today Could Be AI's Stock Bubble Peak
Last Friday, Feb. 17, 2024, Softbank's founder, CEO Masayoshi Son, said he sought investors to raise $100 billion. Son wants to raise $100 billion to increase the supply of artificial intelligence-customized semiconductors. Just as Nvidia (NVDA) is investing billions to protect its moat in the years ahead, Softbank wants to do the same by entering the market.
Softbank would invest $30 billion while seeking $70 billion from outside partners.
This Wednesday, Feb. 21, is the next short-term milestone date when Nvidia posts its quarterly earnings. The chip giant is a magnificent seven at an incredible market capitalization of $1.8 billion. It is worth 9 times more than Intel (INTC) because its core market is computer chips. Nvidia's graphics processors are the main engine on the AI servers.
Last week, Nvidia revealed its investments in speculations like SoundHound (SOUN), ARM Holdings (ARM), truck maker TuSimple (TSPH), Recursion Pharmaceuticals (RXRX), and Nano-Imaging (NNOX). Speculators blindly followed Nvidia's investments, boosting their stock price. Their lack of research on those companies requires Nvidia to continue its growth rate for the next several years. If Nvidia posts a weak quarter or outlook, it makes today the peak for AI stocks.
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