The enthusiasm for OpenAi’s expansion continues to drive great profits in technological actionsbut in Wall Street the voices that alert on an overheated market that remembers the Bubble of the Puntocom of the late nineties.
Something similar happened weeks ago with Oraclewhich added US $255,000 million in a single day after disclosing optimistic forecasts linked to its cloud business and an agreement of US $ 300,000 million to five years with the Chatgpt operator.
Wall Street fears a new actions of actions
Although analysts recognize that the Pact with AMD strengthens its position against NVIDIA in the chips market for artificial intelligence, several warn that Extreme reactions reflect an excess of optimism.
“The market is valuing as if all those who do business with Openai were going to win,” he said Michael O’RourkeJonestrading strategist, who recalled that Openai herself still has a negative cash flow.
The magnitude of these movements worries. Brian MulberryZacks Investment Management manager, said that sudden increases in such large companies are “unusual” and that, if any of these agreements fail, a domino effect could be generated.
Meanwhile, the billionaire Paul Tudor Jones It was even more blunt: the current context reminds the 1999 technological bubble and considers it “potentially more explosive.”
Serious consequences
Another alert factor is the Weight that technological ones have today in the S&P 500 index, which is around 35%compared to 15% in 1999. This implies that any correction would have a greater impact on the general market.
Despite warnings, some analysts maintain a positive vision about AMD. Cody AcreeBenchmark, raised its target price of US $ 210 au S270, considering that the agreement with OpenAI substantially changes the perception of the industry on the competitiveness of the company in graphic processors.
However, the fear that the valuations are being disconnected from the foundations grows. As Ted Mortonson summarized, Baird & Co. strategist, “when companies of this magnitude add up to so much market value in such a short time, it is neither good nor normal, it is pure exuberance.”
Source: Ambito
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