Lates News

Charu Chanana, Chief Investment Strategist at Shengbao Bank, pointed out in the report that despite NVIDIA's strong performance, the volatility of AI-related trades is expected to continue. The AI narrative has matured and investors now need to see evidence of profitability and expenditure discipline. The market is increasingly focusing on the quality and structure of demand (training and inference), pricing capabilities, and the speed at which the "easy money" disappears as competition intensifies. Investors should be cautious with AI application layer companies as their profitability is uncertain and competition is fierce, making them the most volatile part of AI trading. In contrast, AI infrastructure providers such as power, cooling, and network connectivity in the supply chain may have more resilience.