Ahead of AI giant Nvidia's quarterly report released on Wednesday evening, there was concern. Would sales live up to the company's enormously high valuation, over $5 trillion? What happens to Nvidia affects the entire stock market climate and thus the world's financial markets.
Now there was absolutely no danger looming for the computer chip manufacturer. On the contrary. Sales forecasts were written up even further.
Nvidia is highly valued. But if you believe the forecasts that they will sell for $300 billion next year, then they are not that highly valued, says Mattias Sundling, head of equity strategy at Handelsbanken, who thinks the concerns about a bubble are exaggerated.
It's a very large investment, but it's also a very big technological shift, he continues.
“Knows just as little”
Any question marks for the future of the AI sector at this point lie more with the customers. All the companies that are now building data centers for huge amounts of money around the world – will they manage to recoup their investments?
What remains to be seen is that – when there are such incredible sums, thousands of billions of dollars being ploughed into this – there is still a willingness to pay for these AI services, says Esbjörn Lundevall and continues:
Maybe it does, maybe it doesn't. But we know just as much or as little about it as we did yesterday (before the Nvidia report was released).
Around Nvidia, the values of many companies have built up to possible bubble levels and created stock market turmoil recently.
“Highest since the dot-com bubble”
"Extremely high valuations have been created. These are the highest valuations since the dot-com bubble 25 years ago. And this report does not change that in any way," says Lundevall.
Now the world's stock markets and the AI-related giants such as Meta and Amazon and others are set to rise further and in the short term build up their valuations even more.
Whether the Nvidia report would show a possible bubble or not was probably a misinterpretation that had been built up.
"I think those were unrealistic expectations. However, it was a fantastic report from the world's largest company and it is clear that it is spreading in the form of better stock market sentiment," says Lundevall.
And it is spreading across the world.
Nvidia is the leading company in AI, and AI is the theme that has been driving the stock markets, especially in the US. And the US stock market is very important for the Stockholm Stock Exchange.
