Benzinga - by Surbhi Jain, .
A recent post on Reddit in r/stocks by user daynightcase, titled “AI Madness and Profitability,” sheds light on a unique perspective regarding the current surge in AI-related stocks.
The Redditor challenged the popular narrative surrounding chip and cloud hardware suppliers such as NVIDIA Corp (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), asserting that there might be more value in the stocks of buyers of AI hardware instead. Major listed players such as Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) aka Google, Meta Platforms Inc (NASDAQ:META), Apple Inc. (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT), along with OpenAI (abbreviated as GOMAAM stocks), draw investor attention here.
AI Madness and profitablitybyu/daynightcase instocks
Irrational Run In Chip And Cloud Hardware Sector In the post, the Redditor dismissed the idea of an AI bubble or a nutty uptrend in the chip and cloud hardware sector. While acknowledging the impressive YoY revenue growth and profit margins of companies like Nvidia, the Redditor argued the market’s short-sightedness led to an irrational run, with many investors kicking themselves for not foreseeing the trend.
The author took a step back to analyze the trend from a different perspective, focusing on the main buyers in the AI space — the GOMAAM stocks. The post emphasizes three key points:
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The post concluded by addressing the doom and gloom surrounding companies like Apple and Alphabet, suggesting that these giants, along with other major players, hold more value for long-term investors. The Redditor advised against blindly following trends and encouraged investors to consider the entire ecosystem, emphasizing the potential for profit in companies providing end-user products.
Where To Look For Potential Value? Daynightcase’s insights challenged the conventional wisdom in AI-related investments, which could prompt readers to reevaluate their strategies and consider the broader landscape of companies involved in the AI space — a reminder to investors not to overlook the potential value offered by major players like GOMAAM in the rapidly evolving technology sector.
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