BofA report: cloud giants' spending may not support rosy AI chip sales forecasts
TiernanRayTech · x · 2026-10-02
Tiernan Ray cites a Merrill Lynch report by analyst Vivek Arya warning that Nvidia and peers could build more AI chips than the market can absorb.
- BofA gathered chip companies' projected sales to Google and other cloud giants and found their capex plans fall short of supporting upbeat multi-year AI chip sales forecasts.
- A separate UBS study argues chip stocks are undervalued, a view Ray shares, but the market clearly distrusts the sales projections.
- Tickers referenced: $NVDA, $AMD, $MU.
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