AI stocks bounce back after bruising selloff last week

Nvidia CEO Jensen Huang stated that 2 gigawatts of AI capacity is worth $80 billion to the company, up from $18 billion per gigawatt previously. With 43 gigawatts of new AI compute expected in 2027, Nvidia could reach $692 billion in revenue by fiscal 2028 if it captures a portion of the market. Huang noted that land, power, and data center buildings are key obstacles, and new partnerships in Europe may address these challenges.

Modal, a New York-based AI computing startup, is adding Nvidia's Vera CPU to its server lineup, citing doubled AI agent performance. The company's valuation reached $15.75 billion, with $1 billion in projected sales. Modal uses a multi-cloud model and partners with companies like DoorDash and Runway. Nvidia expects $20 billion in Vera chip sales this fiscal year, competing with Intel and AMD.

Intel (INTC) shares rose 6% to $95 after JPMorgan upgraded the stock to 'neutral' from 'underweight', citing growing confidence in AI demand and recent pullback. JPMorgan's price target of $85 remains below the analyst consensus of $121.

Nvidia requires suppliers (Samsung, SK Hynix, Micron) to use TSMC’s 3nm process for NVHBM base dies, aiming for consistency. Samsung agreed, marking their first collaboration on HBM. NVHBM offers 30% more bandwidth, 15% less power than standard HBM4E. UBS forecasts a 10% HBM supply gap in 2024. TSMC plans 3nm production expansion. Samsung maintains turnkey approach for other HBM products.

Netlist Inc. has secured licensing and commercial agreements with Micron Technology and Samsung, totaling about $1.5 billion over five years. The deals include IP licensing, cash payments, and share purchases. Netlist shares have surged from $0.99 to $6.02 this year, with a market cap of $2.2 billion. The agreements end years of litigation and position Netlist for growth in AI-driven memory technology.

Intel (INTC) stock rose 4.6% Monday after JP Morgan upgraded it from 'underweight' to 'neutral', citing reduced risk as the stock nears its $85 target. Analyst Harlan Sur noted market share declines in server and PC CPUs but sees progress in foundries and AI chip demand. Intel is expected to turn profitable next year.