Strong Feedback in Artificial Intelligence Stocks: Investors Are Cautious of Skeletal Optimism

Artificial Intelligence Stocks Are Reviving

Artificial intelligence stocks on the US exchanges saw a significant rise on Thursday, catching the attention of investors. However, some analysts on Wall Street prefer a cautious approach regarding the sustainability of this rally. One of the standout companies was Micron Technology; the company provided a quarterly revenue forecast about 30% above market expectations with its earnings report released after Wednesday's close.

Micron's Strong Earnings and Demand Expectations

Micron's earnings report highlighted strong opportunities in artificial intelligence demand, proving to be a morale-boosting development for investors. In recent weeks, concerns about the debt of AI companies had pressured sector stocks. However, many AI companies are trying to shape their commercial futures by establishing partnerships with giants like OpenAI.

Analysts' Cautious Expectations

Leading analyst Jordan Klein stated that despite Micron's strong results, he does not foresee a significant turnaround in AI chip investments. “I have no idea when it will happen,” Klein said, adding that this effect might not come until 2026. He emphasized his expectation that Nvidia's Blackwell chips, which train new large language models, will provide significant improvements.

Market Dynamics and Investor Trends

It has been observed that investors are shifting from major technology stocks like Nvidia and Advanced Micro Devices (AMD) to different sectors. Joe Mazzola stated that although Micron's earnings may boost AI-related stocks, the overall market trend is still inclined towards this exit direction.

Debt Management and Future Forecasts

Analyst Gil Luria noted that Micron’s financial data indicates that the demand for AI computing is higher than its supply. However, Luria cautioned that Micron's report may fall short in coping with the negative atmosphere in the sector.

In conclusion, while the dynamics of the artificial intelligence sector continue to carry significant uncertainty for investors, Micron's success remains a hopeful signal for them.