by Ian Cooper
With the trade war, the government shutdown, and now regional banks disclosing issues with bad and fraudulent loans, markets are still attempting to shrug it all off.
Some analysts are also concerned the AI bubble will soon pop.
Others are buying into that idea, though. In fact, as noted by NBC News, “In a note to clients published Thursday titled ‘AI Spending Is Not Too Big,’ Goldman Sachs economist Joseph Briggs made the case that the billions being spent on building out data centers — known as capital expenditures, or “capex” — remains sustainable.”
Even Goldman Sachs doesn’t believe there’s a bubble.
Instead, as noted by Quartz.com, “The financial services company, in a note to investors this week, said that it believes the AI story is just getting started – and the investments that seem huge today will be dwarfed by the benefits AI will deliver. Long term, it said, AI adoption could add $20 trillion to the U.S. economy. AI, it said, is already delivering those gains in productivity when deployed right.”
It’s also why analysts are still bullish on AI leading tech stocks, such as:
Analysts at Bank of America just reiterated a buy rating on Nvidia (SYM: NVDA). The firm says NVDA is well-positioned for healthcare and artificial intelligence. “Nvidia, a leader in accelerated computing, has broadened its reach into high-compute healthcare workloads and continues to engage in partnerships on the application side,” they said, as quoted by CNBC.
Jefferies also reiterated a buy on NVDA, noting, “One of the clear takeaways from the conference is that the entire ecosystem is chasing NVDA. We are seeing everyone chasing the scale-up opportunity at a multiyear disadvantage vs NVDA,” as quoted by CNBC.
Analysts at Barclays just raised their price target on Taiwan Semiconductor (SYM: TSM) to $275 with an overweight rating. That was after TSM raised their 2025 revenue guidance to mid-30% growth and reiterated plans to invest $42 billion in capital expenditures by year’s end. Taiwan Semiconductor also posted a 39.1% jump in third-quarter profits.
Bank of America also reiterated its buy rating on Advanced Micro Devices (SYM: AMD) with a $300 price target. “We rate AMD Buy. It serves a multi-hundred billion addressable market opportunity in PC, server, high-end gaming, deep-learning and related markets where AMD has less than 30% value share currently,” as noted by CNBC.
Again, even with talk of a potential AI bubble, analysts are ignoring it.
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