Analyst Says OpenAI Deal Fears Overblown<\/p>\n
On Monday, Morningstar analysts said that concerns around the speculated OpenAI deal were overblown.<\/p>\n
\u201cWe continue to believe that investors should properly be aware of such deals, but we don’t view the report as a sign that AI demand is a mirage. AI token usage continues to rise exponentially, while AI hosting companies appear to be computing constrained,\u201d they said in a report.<\/p>\n
Given the high likelihood of strong AI capital expenditures in the near term and medium term (and likely the long term too), we believe Nvidia’s growth prospects are underrated.\u00a0<\/p>\n
\u201cOur understanding is that Nvidia is providing backstops to some neoclouds, enabling them to receive better financing terms for buildouts in exchange for sharing some of their AI hosting revenue with Nvidia\u2026 A similar OpenAI deal would be much larger and more prominent, but in our view, is squarely in line with Nvidia’s broader strategy of seeding and developing the AI ecosystem for all players,\u201d according to Morningstar.<\/p>\n
Retail View On Chip Stocks<\/p>\n
On Stocktwits, the retail sentiment was \u2018neutral\u2019 for NVDA, \u2018bullish\u2019 for AMD, and \u2018extremely bullish\u2019 for INTC.<\/p>\n
\u201c$AMD $NVDA $INTC $MU Well the whole TAM bs doesnt even matter, the reality is these companies are building these data centres, and computers are all that will matter in the end,\u201d a trader\u00a0wrote<\/a>.<\/p>\n Another\u00a0said<\/a>: \u201c$NVDA $QQQ\u00a0 speculative news of potential funding OpenAI datacenter by Wallstreet news caused damage, unbelievable.\u201d<\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n
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