For immediate release
Chicago, IL – October 4, 2024 – Today’s Zacks Investment Ideas feature focuses on Nvidia NVDA, Taiwan Semiconductor TSM, and Accenture ACN.
AI News: Blackwell demand raises OpenAI
Will the AI sugar high end?
Big tech companies hope to benefit from, or at least avoid being disrupted by, the coming artificial intelligence (AI) revolution after OpenAI’s ChatGPT chatbot became the fastest-growing consumer app in history We have invested a tremendous amount of money into this.
“I’m telling you, the world’s first billionaires are going to come from people who master all of AI and its derivatives and apply them in ways we can’t even think of.” ~Mark Cuban
Despite Wall Street’s concerns about the AI bubble and overhyped innovation, some of the world’s brightest technology minds and participants in the last meteoric technology revolution agree. I’m giving it to you. Everyone involved in technology is participating, from Peter Thiel to Bill Gates to Elon Musk. is considering AI and believes the hype is real.
Magnitude 7 AI spending explodes
The Magnificent Seven stocks are outperforming the overall market in terms of profit growth and stock price. The success of American tech giants has amassed huge amounts of cash.
Nevertheless, CEOs of major technology companies are not resting on their laurels when it comes to the next big revolution. In fact, the largest technology companies spent an eye-popping $100 billion on AI in the first six months of 2024 alone (an almost 50% increase compared to 2023). But with little revenue showing versus spending, many Wall Street analysts are worried that spending could slow, leading to a correction in AI stocks.
Latest information on Jensen van Blackwell
To answer these concerns, there’s no better AI proxy than Nvidia, the undisputed AI leader. In a television interview Thursday, CEO Jensen Huang dismissed concerns. Huang updated investors on Blackwell, Nvidia’s most sophisticated next-generation chip, calling demand for it “insane.” He also revealed that Blackwell is “fully operational” after some delays caused by NVIDIA’s supplier Taiwan Semiconductor.
Accenture and Nvidia Ink Landmark Partnership
Mr. Huang’s main reason for appearing on TV was to promote his contract with consulting giant Accenture. Accenture leverages Nvidia’s AI suite to scale AI applications, accelerate innovation, increase efficiency, and reduce costs.
OpenAI’s valuation grows to $150 billion
In other news, OpenAI officially changed its business structure from a nonprofit to a for-profit corporation last week. This week, OpenAI announced a successful new funding round that values the startup at $150 billion. Cathie Wood’s Ark is one of the high-profile investors who reportedly participated in the round.
Ark, best known for investing in disruptors, invested $250 million in OpenAI. A recent graph shared by Ark Invest shows that large language models such as ChatGPT, Claude, Perplexity, and Bing may be eroding Google’s dominant search engine share.
conclusion
Many Wall Street analysts are worried that the AI-induced rise in sugar prices will fade. But Nvidia’s “insane demand” and OpenAI’s huge valuation suggest the AI spending bull market is unlikely to subside anytime soon.
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Our team of experts has revealed the 5 stocks most likely to rise +100% or more in the coming months. Of these five stocks, research director Sheraz Mian highlights one that will rise the most.
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Taiwan Semiconductor Manufacturing Co., Ltd. (TSM): Free Stock Analysis Report
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