How long can chip makers keep the AI hype afloat?



Recovering chipmakers like Nvidia (NVDA) are leading the charge in the tech-heavy Nasdaq Composite (^IXIC), which surged by over 2.6% in Wednesday’s session as companies like Meta Platforms (META) revealed ongoing CapEx (capital expenditures) investments into AI infrastructure in its earnings.
Moor Insights & plan Founder, chief executive officer, and chief analyst Patrick Moorhead joins Asking For A Trade to give insight into the tech sector, the AI trade, and what it means for Big Tech moving forward into the earnings season.
Moorhead reiterates his thought from a previous interview: “I really laid out a thesis that says the infrastructure build-out is going to continue for at least another year and maybe 18 months, and that’s driven primarily by the downstream FOMO, or the fear of missing out, from those enterprise SaaS providers. Meta, who clearly showed that they’re investing hardcore because they have to. If you are not investing in your competitors, you could be set back potentially a decade here.
Moorhead is also looking at the long-term valuations of AI-adjacent software companies and chip designers like ServiceNow (NOW), Salesforce (CRM), Qualcomm (QCOM), and Arm Holdings (ARM)
He ends with his thoughts that Nvidia (NVDA) has “at least another 12 months to run. We saw TSMC (TSM), where Nvidia does all of their manufacturing, they’re basically sold out through 2025 and into 2026. We just heard from Microsoft (MSFT) and Meta that that they’re putting the pedal to the metal on this. And all of this is goodness for Nvidia.”
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