AI Bubble Watch on Nvidia, CoreWeave, Meta, and More
Last week, Nvidia (NVDA) made history by beating Microsoft (MSFT) to the race for the $4 trillion market capitalization title. Before that, Apple (AAPL) had its chance.
The chances are low that Apple will trade at a similar size to that of Nvidia. At its latest developer conference, the beloved maker of the iPhone did not introduce anything impressive. That is, it lacked artificial intelligence developments.
CoreWeave (CRWV) lost 23.8% of its value in the last week. The company will acquire Core Scientific (CORZ). The $9 billion price tag will dilute CRWV stockholders, since it is paying for the firm in an all-stock transaction.
The buyout gives CoreWeave 1.3GW in gross power. AI servers consume plenty of power. However, the firm did not need to spend $9 billion to “accelerate” its “strategy to deploy AI and HPC workloads at scale.” What happens if demand suddenly drops?
Meta Platforms (META) continued on its shopping spree. On the weekend, it bought PlayAI. This startup develops voices that sound human-like. Meta confirmed the deal but did not disclose the price paid.
Disappointing AI supplier Intel (INTC) shares trended higher. It will sell 45 million shares held in Mobileye (MBLY). By comparison, Intel holds 87.6% of the firm, or 711.5 million shares. Since its acquisition, Intel has failed to create value from holding Mobileye.
