"While there are concerns that the AI bubble could pop, we're not buying into it. In fact, as pointed out by Rich Duprey, "Proponents like Mark Cuban emphasize the light-bulb moment: AI is infrastructure for a new industrial revolution, not a quick flip. Goldman Sachs notes valuations aren't extreme, and liquidity supports growth." Others argue we're still early in the AI super cycle, noting we'll see continued significant capex from big tech names and larger financial firms."
"Just this morning, analysts at Bernstein reiterated an outperform rating on Nvidia ahead of earnings and said NVDA is a key player in the robotic chip market. Loop Capital reiterated its buy rating on the tech giant and hiked its price target to $350 from $250. The firm believes NVDA can double its GPU shipments over the next year to 15 months to 2.1 million by the January 2026 quarter."
"Goldman Sachs reiterated its buy rating on NVDA with a price target of $240 from $210 ahead of earnings, as well. The firm believes investor expectations have risen heading into NVDA's earnings, driven by multiple AI infrastructure announcements. The firm also believes NVDA will deliver a beat-and-raise quarter. Helping, Nvidia is up on news that Microsoft secured export licenses from the Trump Administration to ship NVDA chips to the United Arab Emirates."
Concerns exist that an AI bubble could pop, but many view AI as long-term infrastructure enabling a new industrial revolution rather than a short-term speculative trade. Valuations are not viewed as extreme and liquidity is seen as supporting continued growth. Observers expect a prolonged AI super cycle with sustained capex from big tech and large financial firms. Analysts remain bullish on Nvidia, with Bernstein, Loop Capital, and Goldman Sachs reiterating positive ratings and raising targets amid expectations of rising investor expectations, stronger-than-expected earnings, and accelerated GPU shipment growth. Other upgrade recipients include Qualcomm, Snap, and Super Micro.
Read at 24/7 Wall St.
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