①Maroni pointed out that even as a new member of the "big seven", Nvidia is not inferior to other technology giants in terms of performance and growth. Compared with them, the performance of companies like Super Micro Computer has always been "unstable". ②The unpredictability of the "AI demon stocks" combined with the previous rapid rise in stock prices makes them particularly vulnerable to short selling.
On September 4th, according to Caixin, just like the frenzy in many periods of the stock market, artificial intelligence technology first drove the skyrocketing of some company stocks, followed by a bunch of suspicious companies.
The practice on Wall Street is to buy all the stocks first, and then let time distinguish which ones are real and which ones are fake. Currently, some "original AI favorites" are being bet on to fall, such as $Super Micro Computer (SMCI.US)$ and $Lumen Technologies (LUMN.US)$.
Last week, Super Micro Computer, which was targeted by the well-known short-selling institution Hindenburg, fell more than 28%. Ken Mahoney, CEO of Mahoney Asset Management, said, "We are differentiating between the winners and losers."
Analysis suggests that ai technology may still help change the economy and create opportunities for hundreds of companies. However, in the stock market, companies that ultimately achieve technological success still face many setbacks, just as the internet boom has experienced the bursting of the bubble.
Last week, the market's reaction to Nvidia's financial report showed the fragile sentiment in the financial market. Even though the performance indicators of this chip giant exceeded expectations across the board, the stock price plummeted by more than 6% in a single day simply because the revenue forecast for the next quarter did not meet the 'higher standards'.
Maroni said that investors have become accustomed to 'greatly exceeding expectations' from Nvidia. But he pointed out that even as a new member of the 'big seven', Nvidia is not inferior to other tech giants in terms of performance and growth. In comparison, the performance of companies such as Super Micro Computer has 'always been unstable'.
The unpredictability of 'AI hype stocks' combined with the previously rapid rise in stock prices makes them particularly vulnerable to short selling attacks. The day after Singtel's criticism of Super Micro Computer, Kerrisdale Capital announced on social media that it was shorting fiber optics stock Lumen Technologies.
In addition to Super Micro Computer, Singtel also accused $iLearningEngines (AILE.US)$ of falsifying financial data. Meanwhile, Symbotic, supported by SoftBank, was also attacked in a bearish report that showed videos taken by drones indicating that some of the company's locations had no operational activities.
Gabelli Funds portfolio manager John Belton told the media, 'The stock market always operates in a fast-paced and forward-looking manner, and then enters a digestion period. For many of these companies, we are currently in a healthy digestion period.'
"We don't know how big (the scale of AI) will be, and there may be some small-scale overinvestment phenomena in this market context," Belton said, "We are still in the part of the generative AI investment cycle where it is difficult to predict the long-term cyclical form."
Editor/Somer