Hedge fund warns Nvidia in bubble, questions AI usefulness; Intel downgraded

From Investing.com: 2024-08-04 03:02:40

Elliot Management warns Nvidia stock is in a ‘bubble’ and declares AI ‘overhyped’. The hedge fund questions AI’s cost efficiency and potential, stating that only a few real uses exist currently. Chip stocks have faced setbacks amid fears of sustainability and limited productivity gains from AI. Nvidia’s future hangs in the balance.

Meta Platforms receives a slew of price target raises post strong earnings. Oppenheimer and BofA Securities analysts upgrade Meta, highlighting its AI focus for future growth. The new price target implies positive outlook and discounted valuation compared to peers. Confidence in Meta remains high amidst positive revenue results and guidance.

Intel faces downgrade from BofA analysts after disappointing Q2 performance. The downgrade is driven by weak Q3 outlook, structural challenges, and lack of competitive AI accelerators. The suspension of dividends adds to concerns, leading to significant cuts in earnings forecasts and price target reduction. Intel’s future profitability remains uncertain amidst fierce competition.

Arm shares downgraded by HSBC amid premium valuation and weaker AI PC narrative. Arm projected to face earnings downside risks ahead of 1Q25 results due to potential smartphone slowdown. Shares face over 20% decline on softer guidance and broader tech sell-off. ARM’s narrative fails to justify premium valuation relative to peers.

Datadog stock upgraded to Buy by BTIG on strong market checks and growth prospects. BTIG highlights Datadog’s potential to gain market share with innovative products like Flex Logs and Bits AI. Fieldwork suggests favorable outlook for observability spending in the macroeconomic environment. Datadog well-positioned to capitalize on growth opportunities and potential displacement of Splunk.



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