Overview
- Baskets of AI beneficiaries rallied more than 3.5% on Monday after their weakest week since the April tariff shock, with chip and data‑center names leading gains.
- Bank of America’s Vivek Arya reiterated buy ratings across data‑center and semicap leaders, citing Nvidia’s roughly $500 billion in 2025–2026 data‑center orders and modeling potential 50% sales and 70% EPS growth for 2026.
- Wedbush’s Dan Ives projected a multiyear capex supercycle, estimating Big Tech spending could reach $550 billion to $600 billion by 2026, while Fundstrat’s Tom Lee said AI fundamentals remain intact.
- Skepticism persists on select highfliers, with Jefferies’ Brent Thill seeing about 60% downside risk for Palantir and Seaport Research’s Jay Goldberg setting a target that implies roughly 46% downside for Nvidia.
- SoftBank reported a net profit of 2.5 trillion yen for the quarter on AI stock gains and disclosed selling $5.8 billion of Nvidia shares after the period, as the market looks to Nvidia’s Nov. 19 results and weighs power‑supply constraints flagged by EPRI’s projection that U.S. data centers could consume up to 9% of electricity by 2030.