Jim Covello backs hyperscalers over chipmakers for AI gains
Updated
Updated · Bloomberg · Apr 30
Jim Covello backs hyperscalers over chipmakers for AI gains
5 articles · Updated · Bloomberg · Apr 30
The Goldman Sachs co-head of equity research made the call in a Thursday client note as investors seek returns from the AI infrastructure buildout boom.
Covello said investors should be long hyperscalers and underweight semiconductors, arguing the market already reflects substantial scepticism about hyperscalers' return on investment.
He said that scepticism has left hyperscaler valuations significantly compressed, making the large cloud and technology spenders more attractive than chipmakers for AI-related upside.
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