Benzinga - by Rounak Jain, Benzinga Staff Writer.
Tesla bull Ross Gerber has suggested that the tech sector’s earnings reports are indicative of substantial AI infrastructure spending.
What Happened: Gerber took to X, formerly Twitter, on Thursday to express his views on the tech sector’s earnings reports. He believes that the consistent trend of these reports points towards a significant increase in AI infrastructure spending. He also emphasized the potential benefits for companies involved in AI infrastructure.
Gerber’s post comes at a time when the tech sector is experiencing a surge in AI-related activities.
This surge is being driven by companies like Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, which have beaten Street consensus estimates in their March 2024 quarter earnings, led by AI and cloud computing space.
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"Every earnings report from the tech sector points to lots of infrastructure spending on AI… Bodes very well for the bricks and mortar companies behind AI."
Every earnings report from the tech sector points to lots of infrastructure spending on AI… Bodes very well for the bricks and mortar companies behind AI> $NVDA $SMCI $DELL $ASML $META $TSLA— Ross Gerber (@GerberKawasaki) April 25, 2024
Here’s how the stocks Gerber recommended have performed in 2024 so far, according to Benzinga Pro:
| Company | Last trading price (as of last closing) | Returns (year-to-date) |
| Nvidia Corp. | $826.32 | 71.55% |
| Super Micro Computer Inc. | $787.40 | 175.85% |
| Dell Technologies Inc. | $124.91 | 67.01% |
| ASML Holding NV | $902.51 | 25.89% |
| Meta Platforms Inc. | $441.38 | 27.46% |
| Tesla Inc. | $170.18 | -31.50% |
Why It Matters: Gerber’s tweet is particularly relevant given the recent surge in AI-related activities within the tech sector. Companies like Microsoft have been delivering impressive performances in the AI and cloud computing space, as highlighted by Wedbush’s Dan Ives.
"Mad Money" host Jim Cramer also termed Microsoft and Google's recent quarters "spectacular."
Deepwater Asset Management’s Gene Munster applauded Google’s $100 billion revenue projection, saying it’s a sign that the company is “entering a new growth phase.”
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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