Invest in the latest developments in artificial intelligence (AI) has been a wild ride over the past year. However, over the past few weeks, investors have felt this sinking feeling as many stocks in the sector have lost altitude. The combination of a rapid rise in stock prices and uncertainty heading into earnings season led to the fall, although many believe the decline is temporary. Market watchers are looking for any signs that the downward pressure may be easing and may have found reason to be optimistic today.
With this as a backdrop, data mining and analytics provider BigBear.ai (NYSE:BBAI) soars 9.3%, specialist in AI servers Super microcomputer (NASDAQ:SMCI) jumped 6.3%, chip maker Arm holds (NASDAQ:ARM) jumped 3%, AI solutions provider C3.ai (NYSE:IA) climbed 3.3%, and Micron technology (NASDAQ:MU) gained 2.9%, as of 12:56 p.m. ET Tuesday.
A check of all the usual suspects — regulatory filings, financial reports and analyst price target changes — revealed nothing that could influence company-specific disclosures. any of them of these AI stocks on the rise. This suggests that many investors have focused on the developments of one of the biggest names in AI, the chipmaker. Nvidia (NASDAQ:NVDA).
A sign of continued demand
FPT, one of Vietnam’s leading technology companies, announced a comprehensive strategic partnership with Nvidia, according to a press release issued Tuesday morning. The aim of the collaboration is to offer its customers a “one-stop shop for AI and cloud” and will include “AI products, [graphics processing unit] infrastructure, technical experts and domain expertise” for its clients in Vietnam and across the region.
The centerpiece of this plan is to invest $200 million to build an AI factory and cloud facility, which will include Nvidia’s latest AI technology, including its H100 Tensor Core GPUs and AI software and frameworks. business. FPT plans to prioritize three key industry sectors: automotive, manufacturing and banking, financial services and insurance, providing “end-to-end generative AI services”.
While this may seem like a minor development in the grand scheme of things, it nevertheless proves that the demand for AI continues to spread. Additionally, as FPT’s customers begin to adopt AI, it will open additional opportunities for Nvidia to sell its products and services.
Nvidia announced plans late last year to expand its presence in Vietnam.
A tenuous connection
While this is undoubtedly good news for Nvidia, what does this have to do with our quintet of AI stocks? The continued wider adoption of AI is good news for all stocks in the sector. If the advantages are more concrete for some, others are more tenuous.
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Super Micro Computer made AI-enabled premium servers which are both energy efficient and highly customizable. Nvidia is one of the main suppliers of Supermicro’s AI processors.
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Arm Holdings licenses some of the architecture and designs…
