The AI boom of 2023 saved the ailing technology sector selloff of 2022. This year, Nvidia (NVDA) is up by a commanding 20% and up by 7% in the last week alone. At $594.91, only a few bears who have a 1.05% short interest against the stock are suffering.
Nvidia is supplying AI computing chips for Meta Platforms (META). According to CEO Mark Zuckerberg, Meta already spent billions on those AI chips. This includes a whopping 350,000 H100 chip purchases by the end of 2024. Meta needs the GPU compute power for its infrastructure. Investors may estimate Nvidia getting over $9 billion in GPU revenue from Meta.
Meta needs AI chips for its platform. It needs general intelligence systems for its developers and the developer community.
Super Micro Computer – SMCI – trounced the bears who have a short interest of 9% as of last Friday. The firm raised its Q2/2024 sales forecast to $3.6 billion to $3.65 billion. This is above the previous forecast of $2.7 billion to $2.9 billion.
AMD, Microsoft (MSFT), and IBM get an honorable mention in the AI space. IBM is the least expensive stock of the bunch. After an analyst upgraded IBM stock, it, too, may continue its break out to new highs.
