Nvidia Notifies Customers About AI-Related Price Hikes

Summary

Bloomberg's Anthony Stephens discusses how strong AI-related capital markets demand is supporting Asia's AI trade, while Alibaba's placement priced tight and the US momentum factor deteriorates. He also highlights upcoming catalysts including Nvidia earnings and AI server price hikes.

• Bloomberg learned that Nvidia customers were told AI server prices are rising more than 15% in many cases, driven by soaring memory chip costs.
• Anthony Stephens says AI-related capital markets demand remains seemingly insatiable across IPO demand, investment-grade issuance, and private credit.
• Alibaba's placement came tight relative to the stock's typical move, about one standard deviation.
• Strong AI demand is seen setting up Asia's AI trade well.
• Heavy AI-related issuance is pressuring other areas, with the US momentum factor deteriorating and high-risk parts of the market cracking.
• Bigger Asian companies, including Korea, are finding their feet and returning cash to the market.
• Nvidia earnings later this week may become a dominant catalyst for the AI trade.