The bearish warnings on the artificial intelligence bubble imploding receded. Despite investors dismissing Oracle’s (ORCL) remaining performance obligations (bookings) figures, shares started to rebound. TikTok confirmed and signed a deal to sell its U.S. unit. Oracle led the investment.
The reversal in negative sentiment boosted Nvidia (NVDA). Last Friday, the stock gained 3.93% to close at $180.99. One of its largest customers, OpenAI, reported planned an initial public offering. It will try to raise $100 billion for an $830 billion valuation.
OpenAI needs the funds, since it committed $1.15 trillion in hardware and cloud infrastructure spending between now and 2035.
The bullishness for anything AI helped ex-Nvidia billionaire Zhang Jianzhong debut an IPO for Moore Threads. The firm advertised the development of chips that would cut the world’s dependence on Nvidia chips. Unfortunately, after Moore stock soared, the company said that it would use the proceeds to invest its idled funds of 7.5 billion yuan in banks.
Moore Threads is effectively using investor proceeds to hold assets that offer low returns.
Intel (INTC) stock pulled back from a $44.02 high. Watch out for the nearly daily pullback, as traders test the technical range of between $35 - $40. INTC stock is not cheap: its forward price-to-earnings ratio is 62 times.
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