Wedbush analyst Matt Bryson told CNBC yesterday that he’s “definitely confident” that Nvidia (NVDA) will meet its guidance, while the company’s “new chips are getting where they need to be.”
On the other hand, he suggested that Microsoft (MSFT) may be spending less than expected on NVDA’s chips and indicated that investors have become less upbeat on the chip sector as a whole.
NVDA’s New Chips Are Meeting Expectations, Bryson Says
Nvidia’s new chips are rolling out as planned, Bryson stated. He added that the demand for the tech giant’s chips is increasing slightly.
Analyst Identifies NVDA’s Threats
Microsoft (MSFT) may be buying fewer AI chips for OpenAI than previously expected, while the weak performance of CoreWeave’s (CRWV) stock so far suggests that investors’ sentiment towards the chip sector has deteriorated, Bryson admitted.
Further, investors are worried about how U.S. policies will affect chip makers going forward, according to Bryson, although he suggested that these fears are unfounded. Finally, he thinks that concerns about hardware costs are weighing on semiconductor makers.
The Price Action of NVDA Stock
In the last month, the shares are down 10%, while they are up 3% in the last three months.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NVDA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
