Investors Are Worried the AI Rally Has Gone Too Far. Bernstein Analysts Say Nvidia Stock Is Still ‘Cheap’ Here.

After a strong earnings season, AI stocks have risen sharply as demand for AI infrastructure remains strong. This year, the tech-heavy Nasdaq Composite Index ($NASX) is up 12.25%, or more than 3,000 points. Wedbush’s Dan Ives believes that the Nasdaq can climb to 30,000 points this year if another bumper earnings season rolls in. 

However, there have been concerns that the AI rally has gone too far, close to bubble territory, especially as sentiment grows that there is little hope of peace negotiations between the U.S. and Iran at the moment. Michael Burry of “Big Short” fame also believes the same, warning that the AI boom is beginning to look like the last stages of the dot-com bubble.