Recent comments from Nvidia CEO Jensen Huang appear to have reinvigorated investment in the volatile artificial intelligence sector this week, while prompting portfolio managers to refocus on winning trades. “We’re in this computer revolution now, and this generative artificial intelligence is not just a tool. It’s a skill… That’s why a new industry was created,” Huang said Wednesday at the Goldman Sachs Communacopia+ technology conference. Huang said he sees data centers as at least a $1 trillion opportunity, with growth set to accelerate after Huang’s speech, easing recent market delays in artificial intelligence investments. Some jitters over returns. Shares of artificial intelligence and semiconductor companies such as Advanced Micro Devices, Marvell Technology, Super Micro Computer and Broadcom have risen by double digits over the past month. John Belton, portfolio manager at Gabelli Funds, said: “When Jensen says something like this, it signals optimism that there is enough demand to sustain the economy for at least the next 1-3 years. Growth. “That’s what makes the market so exciting. While Huang’s comments may have reignited confidence in this volatile sector, investors see multiple ways to take advantage of both short- and long-term opportunities. In addition to mainstay Nvidia, CFRA’s Angelo Zino believes that as the initial build phase continues Hardware vendors are the biggest beneficiaries in the short term, including Advanced Micro Devices as it ramps up its GPU competition, while network vendors Broadcom and Marvell Technology are supporting the custom silicon chips being developed by Meta Platforms and others. He said Micron Technology should continue to profit from growing memory demand. Apple made headlines this week with the launch of the new iPhone 16, which has artificial intelligence capabilities called Apple Intelligence. Zino isn’t impressed by the update and is skeptical of previous calls for a unique upgrade cycle. Long term, he sees Apple as a leader in AI devices and AI personal assistants, especially with Apple. Dell, a leading enterprise player, should benefit from rising consumer adoption of its Vision Pro headsets over the past three months, he added. stocks. Belton is betting on infrastructure and equipment companies like Applied Materials Inc. The rise of artificial intelligence has spurred thousands of companies to jump on the train, raising concerns that investors could see a repeat of the dot-com bubble that burst in the early 2000s, said Mark Malek, an early investor in Nvidia. He sees tech giants at the forefront of the cloud, such as Microsoft, Alphabet and Amazon, as continuing beneficiaries of the AI tailwind, but points out that the biggest innovations are happening in private markets. Private companies,” he said.
