While there are concerns that the AI bubble could pop, we’re not buying into it.
In fact, as pointed out by Rich Duprey, “Proponents like Mark Cuban emphasize the light-bulb moment: AI is infrastructure for a new industrial revolution, not a quick flip. Goldman Sachs notes valuations aren’t extreme, and liquidity supports growth.”
Others argue we’re still early in the AI super cycle, noting we’ll see continued significant capex from big tech names and larger financial firms.
It would help explain why analysts are still bullish on tech giants like Nvidia (NASDAQ: NVDA | NVDA Price Prediction).
Just this morning, analysts at Bernstein reiterated an outperform rating on Nvidia ahead of earnings and said NVDA is a key player in the robotic chip market.
Loop Capital reiterated its buy rating on the tech giant and hiked its price target to $350 from $250. The firm believes NVDA can double its GPU shipments over the next year to 15 months to 2.1 million by the January 2026 quarter.
Goldman Sachs reiterated its buy rating on NVDA with a price target of $240 from $210 ahead of earnings, as well. The firm believes investor expectations have risen heading into NVDA’s earnings, driven by multiple AI infrastructure announcements. The firm also believes NVDA will deliver a beat-and-raise quarter. Helping, Nvidia is up on news that Microsoft secured export licenses from the Trump Administration to ship NVDA chips to the United Arab Emirates.
Other stocks seeing upgrades include:
Qualcomm (NASDAQ: QCOM): Analysts at Bank of America just reiterated a buy rating on QCOM with a price target of $215. The firm believes QCOM is a long-term beneficiary of 3G-4G-5G smartphone, tablet, and cellular-enabled machine-to-machine adoption worldwide.
Snap (NYSE: SNAP): Deutsche Bank just reiterated its buy rating on SNAP, raising its price target to $12 from $9. The firm noted that SNAP’s partnership with Perplexity AI is a strong step toward building out alternative revenue streams.
Super Micro (NASDAQ: SMCI): Argus analysts just upgraded SMCI to a buy rating, noting that missteps by the company on revenue delivery and margin shortfalls are now reflected in the stock price. They also believe the potential for strong momentum moving forward is being overlooked.
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