In our latest Alert Insight post, we share an alert our system generated last week that would be relevant to anyone watching the #informationtechnology, #semiconductor and #consumerdiscretionary industries, as well as individuals interested in #cloud providers.
On February 6, 2024, at 8:11 AM EST, the Causality Link platform detected an article from David Manners at Metropolis Business Media on Nvidia, the #AI darling of Wall Street. In a blog that had also been published on ElectronicsWeekly.com, David mused over the fact that Nvidia’s largest customers are becoming its rivals. Indeed, Microsoft, Meta, Google and even Tesla are all producing their own AI chips to bring their costs down.
With a current forward P/E of over 50, investors have priced sustained growth into Nvidia stock. This growth might be tempered by the partial defection of its largest customers.
Manners also highlights that Nvidia’s CoreWeave investment will potentially enable the chip manufacturer to compete with other cloud providers, deriving more revenue through verticalization. This strategy is risky for a chip company, however, and will come with its own additional costs.
Read more about Causality Link’s alerts in our new blog post, “A Predictive Edge: Harnessing the Anticipatory Power of Causality Link’s Market Alerts System”: https://lnkd.in/eZ3Gw2wm
Causality Link has brought together causal, neurosymbolic and generative AI to detect market-moving trends – right as they emerge. Contact us today for a custom demo and to learn more about how our tools can enhance your workflows, help you capture alpha and stay informed about the world around you.
