Recently AI stocks have started rising again. On September 21, the Nasdaq in the US rose 2.26%, AMD rose nearly 10%, and Intel rose more than 12%. Nvidia also rose 2.3% that day. This rally shows that market attention to AI is still very high.
I’m particularly focused on Nvidia’s recent performance. In the previous quarter, Nvidia’s revenue reached $96.2 billion, up 106% year over year. Revenue from the data center business reached $89 billion, up 117% year over year. This data indicates that demand for AI chips is still relatively strong. However, I think this data only shows that current demand is strong; it doesn’t necessarily mean it will keep growing at such a high rate in the future.
I’m still bullish on the AI industry. I won’t focus only on chip companies like Nvidia. I’m also looking at areas such as AI servers, optical modules, networking equipment, storage, power, and data centers.
If AI companies want to increase computing power, they need more servers. As the number of servers increases, data centers also need to add more power, networking, and storage. So I think the opportunities brought by AI are not necessarily limited to chip companies—other related industries may benefit as well.
That said, I’m also concerned about one issue. Many AI stocks have already risen quite a lot, and some companies’ valuations are not low. If companies reduce their AI spending later, or if AI spending doesn’t generate enough revenue and profit, stocks could still fall.
So I don’t just chase AI stocks simply because they’re going up. I pay more attention to a company’s orders, revenue, profit, and cash flow. I also look at whether an AI company’s performance can keep up with its current stock price.
I’m still bullish on the long-term demand for AI, but I’m more cautious about the near-term upside. For me, what’s truly worth watching next isn’t whether AI can keep rising, but whether money in the AI industry chain will continue to flow beyond chips.
Do you think the next round of AI opportunities will still be concentrated in chips, or will they gradually spread to optical modules, power, storage, and data centers?
#AI stocks continue to surge—what other investment opportunities are there
I’m particularly focused on Nvidia’s recent performance. In the previous quarter, Nvidia’s revenue reached $96.2 billion, up 106% year over year. Revenue from the data center business reached $89 billion, up 117% year over year. This data indicates that demand for AI chips is still relatively strong. However, I think this data only shows that current demand is strong; it doesn’t necessarily mean it will keep growing at such a high rate in the future.
I’m still bullish on the AI industry. I won’t focus only on chip companies like Nvidia. I’m also looking at areas such as AI servers, optical modules, networking equipment, storage, power, and data centers.
If AI companies want to increase computing power, they need more servers. As the number of servers increases, data centers also need to add more power, networking, and storage. So I think the opportunities brought by AI are not necessarily limited to chip companies—other related industries may benefit as well.
That said, I’m also concerned about one issue. Many AI stocks have already risen quite a lot, and some companies’ valuations are not low. If companies reduce their AI spending later, or if AI spending doesn’t generate enough revenue and profit, stocks could still fall.
So I don’t just chase AI stocks simply because they’re going up. I pay more attention to a company’s orders, revenue, profit, and cash flow. I also look at whether an AI company’s performance can keep up with its current stock price.
I’m still bullish on the long-term demand for AI, but I’m more cautious about the near-term upside. For me, what’s truly worth watching next isn’t whether AI can keep rising, but whether money in the AI industry chain will continue to flow beyond chips.
Do you think the next round of AI opportunities will still be concentrated in chips, or will they gradually spread to optical modules, power, storage, and data centers?
#AI stocks continue to surge—what other investment opportunities are there
