| AI’s timebomb |
Some analysts are also concerned the AI bubble will soon pop.
Others are buying into that idea, though.
Goldman Sachs doesn’t believe there’s a bubble.
Instead, as noted by Quartz.com, “The financial services company, in a note to investors this week, said that it believes the AI story is just getting started – and the investments that seem huge today will be dwarfed by the benefits AI will deliver.”
Long term, the investment bank says that AI adoption could add $20 trillion to the U.S. economy. AI, according to Goldman Sachs, is already delivering those gains in productivity when deployed right.”
In addition, Mary Callahan Erdoes, CEO at JPMorgan Asset and Wealth Management, dispelled worries over valuation, saying that AI is presenting opportunities not fully appreciated or understood yet,” as noted by CNBC. “AI itself is not a bubble. That’s a crazy concept… We are on the precipice of a major, major revolution in a way that companies operate,” Erdoes added.
“So, if you say to yourself, is AI in a bubble, I feel you have to get very granular on how you’re going to answer that, because in the U.S., we’re starting to gain traction, but we’re nowhere near the ability to have the stuff all to the bottom line.”
It’s also why analysts are still bullish on AI leading tech stocks, such as:
Analysts at Bank of America just reiterated a buy rating on Nvidia (SYM: NVDA). The firm says NVDA is well-positioned for healthcare and artificial intelligence. “Nvidia, a leader in accelerated computing, has broadened its reach into high-compute healthcare workloads and continues to engage in partnerships on the application side,” they said, as quoted by CNBC.
Analysts at Barclays just raised their price target on Taiwan Semiconductor (SYM: TSM) to $275 with an overweight rating. That was after TSM raised their 2025 revenue guidance to mid-30% growth and reiterated plans to invest $42 billion in capital expenditures by year’s end. Taiwan Semiconductor also posted a 39.1% jump in third-quarter profits.
Bank of America also reiterated its buy rating on Advanced Micro Devices (SYM: AMD) with a $300 price target. “We rate AMD Buy. It serves a multi-hundred billion addressable market opportunity in PC, server, high-end gaming, deep-learning and related markets where AMD has less than 30% value share currently,” as noted by CNBC.
Again, even with talk of a potential AI bubble, there’s opportunity.
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