With the trade war, the government shutdown, and now regional banks disclosing issues with bad and fraudulent loans, markets are still attempting to shrug it all off.
Some analysts are also concerned the AI bubble will soon pop.
Others are buying into that idea, though. In fact, as noted by NBC News, “In a note to clients published Thursday titled ‘AI Spending Is Not Too Big,’ Goldman Sachs economist Joseph Briggs made the case that the billions being spent on building out data centers — known as capital expenditures, or “capex” — remains sustainable.”
Even Goldman Sachs doesn’t believe there’s a bubble.
Instead, as noted by Quartz.com, “The financial services company, in a note to investors this week, said that it believes the AI story is just getting started – and the investments that seem huge today will be dwarfed by the benefits AI will deliver. Long term, it said, AI adoption could add $20 trillion to the U.S. economy. AI, it said, is already delivering those gains in productivity when deployed right.”
It’s also why analysts are still bullish on AI leading tech stocks, such as:
Analysts at Bank of America just reiterated a buy rating on Nvidia (SYM: NVDA). The firm says NVDA is well-positioned for healthcare and artificial intelligence. “Nvidia, a leader in accelerated computing, has broadened its reach into high-compute healthcare workloads and continues to engage in partnerships on the application side,” they said, as quoted by CNBC.
For a trader just learning a new strategy it’s often best to walk through a trade that creates a situation that lands “in the gray”, which covers more unique occurrences that may pop up trading in the real world. This gives them a method to safely trade the markets while they gain both experience and skill set. The difference between a good trader and a great trader is not how the “black” and “white” answers are handled. What separates them is how they handle the “gray” answers.
Below is chart of the stock PBR that has formed a wedge pattern. The wedge pattern has been added to help develop and train your eye to seeing it on the chart.
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