Jared Cohen, Goldman Sachs president of global affairs, director-general of the Goldman Sachs Global Institute, said that speaking to CNBC in the current program amid the rise of data-driven power due to AI, the US will need to cooperate with others. world through “diplomacy.”
“If you look at cloud data center workloads compared to data center AI workloads, data centers for AI workloads need a lot of high-end workloads. They need a deep energy source, and so intermittent energy like wind and solar doesn’t fit the bill. You need base reload energy, so I think nuclear, coal, and natural gas are needed, and we have a lot of that in the US. The problem is that we can’t transport it from many places because it’s not in my backyard. issue. So, the US is going to need some kind of overflow option if it wants to continue to lead in this area. There is no geography that represents the cure for this problem.”
Responding to the question of whether a return to cheap and reliable sources of energy such as coal can satisfy the demand for AI-driven energy, the analyst said the US will continue to need to look beyond relying on sources because the demand for energy is huge.
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Number of Hedge Fund Investors: 193
Aswath Damodaran, NYU Stern School of Business professor of finance, recently spoke about Nvidia Corp (NASDAQ:NVDA) in a CNBC program and said:
“Investors are also paying more attention to the guidance that Nvidia Corp (NASDAQ:NVDA) is giving, and negative trends, I think, are coming from the calmness of that guidance. Nvidia Corp (NASDAQ:NVDA), I believe, is trying to bring investors down to that calm down, it’s going to hurt. Every earnings report, you can see some of this play out, but the stock price is still going down.”
Damodaran explained exactly why he believes Nvidia Corp (NASDAQ:NVDA) is overvalued.
“I think at this price, if you’re buying, you’re expecting the product and the job market to grow a lot more than people expect. You need to be clear that this is what you are basing your purchase on. Even if you consider Nvidia’s dominance in the AI chip market—which I believe they are now—and their ability to maintain these sky-high graphics, you can’t justify the $144 price tag without something else going on. It seems like you’re betting on Nvidia finding and dominating another market, and that’s a tough call. “
Just beating earnings estimates isn’t enough for NVIDIA Corporation (NASDAQ:NVDA) anymore. The stock fell despite reporting better-than-expected numbers for the last quarter. However, analysts are seeing a slowdown in growth. Nvidia’s Q4 revenue guidance missed the purchase-whisper number of $399 million, and the company expects margins to continue to decline next quarter. For Q4, non-GAAP gross margin is estimated at 73.5%, down from 75% in Q3. NVIDIA Corporation’s (NASDAQ: NVDA ) biggest customers, cloud hyperscalers — which account for 50 percent of its revenue — are increasingly developing in-house AI chips and partnering with competitors like AMD. This raises concerns about Nvidia’s medium-to-long-term growth in demand and margins.
Polen Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2024 investor letter:
“In retrospect from the previous two quarters, The company NVIDIA (NASDAQ: NVDA) represented our top contributor for this quarter, despite not performing well, down -1.7%. In many ways, NVIDIA was a microcosm of a larger market that has become increasingly volatile. Under the calm environment, the company experienced a 27% drop followed by a +31% rally, only to repeat the cycle with a -21% draw followed by a subsequent 20% rally to end the quarter. In our view, the stock’s volatility outweighs key business drivers, but the company has benefited from increased operating budgets from cloud service providers and large enterprise AI (“GenAI”) infrastructure applications. At the same time, the stock endured weakness associated with the delay of the next-generation Blackwell chip, and earnings estimates beat expectations, though not necessarily as expected by some investors. While we continue to believe that NVIDIA is a business with great potential, with significant demand for chips and servers ahead of the demand for hardware from global enterprises, we are cautious about its growth as it lacks recurring revenue.
Overall, NVDA in the fourth place on our list of the latest AI stocks to watch in December. While we acknowledge NVDA’s potential, our confidence lies in the belief that this under-the-radar AI stock has the greatest promise to deliver high returns, and to do so within a short period of time. If you are looking for an AI stock that is more promising than NVDA but that trades less than 5 times its earnings, check out our report about cheap AI stock.
READ THE FOLLOWING: 8 Best Wide Moat Stocks to Buy Now and 30 Most Valuable AI Stocks According to BlackRock
Disclosure: None. This article was published on Insider Monkey.
