"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."
"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. It would help explain why Nvidia (NASDAQ: NVDA) is up about $2.20 in premarket, and why Broadcom (NASDAQ: AVGO) is up about $4.70 a share. Even Palantir (NASDAQ: PLTR) is up about $1.45 after losing momentum. In short, don't worry so much about an AI bubble, at least not yet."
Futures rose with Dow, Nasdaq, and the S&P 500 showing premarket gains and SPY ticking higher. Microsoft secured export licenses to ship chips to the United Arab Emirates, contributing to Nvidia premarket strength and prompting multiple analysts to raise Nvidia price targets, including Loop Capital to $350. Broadcom and Palantir also showed premarket gains amid optimism about sustained AI-driven capex from big tech and financial firms. Tesla shareholders will vote on Elon Musk's proposed $1 trillion pay package tied to an $8.5 trillion market cap, and Wedbush reiterated an outperform rating with a $600 target for Tesla.
Read at 24/7 Wall St.
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