Weekly AI Stock Bubble Watch
Concerns about an artificial intelligence stock bubble continued to wane. The mega capitalization firms announced large deals in Saudi Arabia after Trump’s visit. This solidified Microsoft (MSFT), Nvidia (NVDA), and Advanced Micro Devices (AMD) as among the leaders in the AI sector.
Investors should anticipate Oracle (ORCL) and Amazon (AMZN) benefiting from Saudi Arabia-based firms increasing their commitment to building out infrastructure to support AI.
Nvidia shares rallied further last week after the company posted quarterly results.
AppLovin (APP) shares strengthened after investors bet on AI-generated advertising growth. AppLovin has leading advertising technology software. Its Axon recommendation engine is powered by AI. The company’s revenue by 40% in the first quarter.
CoreWeave (CRWV) more than doubled in its share price after the GPU cloud infrastructure firm posted quarterly results. Despite having plenty of last-generation Nvidia GPUs, investors looked at its latest deployment plans. The firm will be among the first to launch servers that leverage Nvidia’s latest GPU offering.
Speculators took notice of C3.ai (AI). The firm offers an enterprise AI platform. However, analysts cut their price targets, underlying their negative views on C3.ai’s earnings growth prospects.
DataDog (DDOG) continued to captivate investors. Bits AI, for example, integrates generative AI tools. The firm offers a platform that helps customers monitor and optimize their cloud applications.
