Market Only Looking at Positives of AMD, OpenAI Deal, Says Analyst Goldberg

Watch Market Only Looking at Positives of AMD, OpenAI Deal, Says Analyst Goldberg - Bloomberg on Dailymotion

Transcript

00:00Jake Goldberg of Seaport calling the recent moves in AI bubble-like behavior.

00:05Jake Goldberg joins us now for more.

00:07Jake, welcome to the program, sir.

00:08You've got a rare sale rating on NVIDIA.

00:11Let's just talk about that line, bubble-like behavior.

00:14Does the announcement from AMD and OpenAI speak to some of that for you?

00:19Absolutely.

00:20It's quite an interesting thing to wake up to this morning

00:23where you have a company that's giving away 10% of its stock

00:27to a startup that doesn't have positive free cash flow

00:31to buy tens of billions of dollars of their products somewhere down the line.

00:35And that company's stock is up 30%.

00:38On the face of it, I haven't had time to parse it,

00:41but it looks like a good deal for AMD over the long term.

00:46But the market reaction seems to be looking at only the positives

00:53and applying a 0% discount rate to future events,

00:57not looking through the whole deal.