Jay Goldberg downgraded NVIDIA and set a $100 price target; NVIDIA traded at $100 on April 21. NVIDIA will announce earnings, and even disappointing results would not immediately reset the stock from its current $177 to $100. Two cases against the valuation are a potential slowdown in global AI investment and difficulty gaining sales in China. Meta halted hiring of world-class AI talent after a rapid, costly buildup and reportedly paid some hires over $100 million. OpenAI CEO Sam Altman called AI valuations a bubble as firms invest heavily in server farms. Tariff changes allowed NVIDIA to sell the less-powerful H20 in China while lobbying continues for stronger products.
Even if the company reports disappointing earnings, the stock will not immediately reset to $100 from its current price of $177. However, there are two cases against NVIDIA's current valuation. The first is that the global tech investment in AI will slow in 2016. The other is that NVIDIA will fail to gain sales in China. Both have a grain of truth in them already.
After a rapid and costly buildup, Meta ( NASDAQ: META) will end its hiring of world-class talent. The news was broadly covered, but originated in The Wall Street Journal. Meta has over 50 AI researchers and engineers. There are rumors that some of them were hired with a pay package of over $100 million. Meta chief Mark Zuckerberg has made it clear that the future success of his company relies on being one of the premier providers of AI in the world.
Collection
[
|
...
]