Two Sides of AI! MSFT AI Spending is Bullish for NVIDIA?
Both $Microsoft(MSFT)$ and $Meta Platforms, Inc.(META)$ stock prices dropped by 4% following their earnings reports.
Although financial results met expectations, management indicated that upcoming AI spending would increase. However, the earnings reports also showed that AI has had limited impact on growth in their traditional business segments.
1. Big AI Spending: A Double-Edged Sword for Microsoft and Meta, but a Boon for NVIDIA
In earnings call, Microsoft announced it would continue ramping up investment in AI infrastructure, with next quarter’s spending budget likely to exceed $20 billion.
This partially confirms that Microsoft has contracted a significant portion of $NVIDIA Corp(NVDA)$’s Blackwell chip orders for the remaining quarters this year.
Recently, NVIDIA’s CEO, Jensen Huang, revealed during his visit to Denmark that a design flaw in the company’s latest AI chip—the Blackwell chip—has been successfully resolved. R
Morgan Stanley projects that NVIDIA could generate $10 billion in revenue from Blackwell chips in Q4 2024, and the chip’s high-profit margins have created a promising outlook for the company.
TSMC’s earnings report showed strong AI demand, which last week helped NVIDIA reach an all-time high of $144.42, briefly placing it as the world’s largest company by market cap, surpassing Apple.
2. Will the “Once-in-a-Generation” Buy Slow Down?
Yesterday, the semiconductor sector saw a pullback due to SMCI’s influence.
Some believe that SMCI’s results will not impact NVIDIA’s performance or trajectory. However, others argue that NVIDIA’s growth could slow in 2025 if AI spending fails to drive broader application growth.
Could this be an ideal buying opportunity for NVIDIA?
Is Nvidia a once-in-a-generation buy?
Comment to win tiger coins~
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Could this be an ideal buying opportunity for NVIDIA?
Is Nvidia a once-in-a-generation buy?
Comment to win tiger coins~
I seized the opportunity to bolster my portfolio during the recent market dip, snatching up:
- $Coinbase Global, Inc.(COIN)$ - A strategic play on the cryptocurrency space
- $Microsoft(MSFT)$ - A stalwart tech giant with resilient growth prospects
Next on my radar: $NVIDIA Corp(NVDA)$. I'm patiently waiting for a pullback to $129.99, presenting an attractive entry point.
However, I'm contemplating a more aggressive strategy - selling puts on my live account. This would allow me to:
- Generate premium income
- Potentially acquire NVDA shares at a discounted price
But, I'm still hesitant. Market volatility and potential risks are keeping me cautious.
However, the appeal diminishes as the price reaches maturity.
Those who miss the boat may not agree with the statement.
Nevertheless, N really changed the streaks of old school chip makers.