Goldman Sachs: Nvidia and AI Are the New Black 🤑

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So, there I was, minding my own business, when I stumbled upon a little nugget of information that could change the world as we know it. Or at least, it could change the world of investing. According to Goldman Sachs analyst James Schneider, Nvidia and a bunch of other AI companies are the new black. Yes, you heard that right. Black. As in, you can’t go wrong with them. 🕶️

James, in his infinite wisdom, has decided to give these companies a “buy” rating. Why? Because, apparently, AI is starting to make money. I mean, who would’ve thought? All this time, we were just throwing money at these fancy algorithms, and now, they’re actually paying off. It’s like finding out your pet goldfish can do your taxes. 🐟

But wait, there’s more. James and his team have also started covering digital chips and something called EDA, which stands for Electronic Design Automation. I know, I know, it sounds like a new dance move, but it’s actually software for designing chips. Who knew? 🤷‍♂️

They’re calling it a “state of transition” in the AI investment cycle. Apparently, we’ve already spent a whopping $350 billion on AI infrastructure, and now we’re starting to see some early signs of revenue. And not just any revenue, but revenue that’s actually making sense. It’s like finding a $20 bill in your old jeans, except it’s a $20 billion bill. 💸

James thinks that AI investments will keep growing, using a “barbell” strategy. I’m not sure if that means they’re going to start lifting weights, but it sounds impressive. This strategy will balance the expensive AI training with more affordable AI use. He’s recommending top AI firms like Nvidia, Broadcom, Cadence, and Synopsys, which are leading the pack in performance and software. These companies are going to benefit the most because, let’s face it, AI is still in its infancy. 🍼

But here’s the kicker: AI isn’t going to become common and cheap anytime soon. It’s not like the latest smartphone that everyone has to have. It’s more like a luxury car that only a few can afford. And it’s not going to dominate the market just yet. 🚗

Goldman Sachs analysts are also bullish on low-cost leaders like EDA companies, which make software for designing chips. These companies are ready to help more chip designers and customers as AI grows. However, there are some risks, like the ongoing U.S.-China tensions over exporting advanced chips. But hey, a little geopolitical drama never hurt anyone, right? 🌍💥

So, if you’re looking to invest, James has given “buy” ratings to Nvidia, Broadcom, Cadence, and Synopsys. But if you’re feeling a bit more cautious, he’s given neutral ratings to Advanced Micro Devices (AMD), ARM Holdings, and Marvell. It’s like choosing between a sure bet and a horse that might win. 🏇

The report concludes with a powerful thought: AI will keep making money by supporting consistent investment in chip and EDA companies as more people use it. It’s like a snowball rolling down a hill, getting bigger and bigger. And if you’re smart, you’ll be there to catch it. 🏆

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2025-07-10 21:11