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Barclays: The Nvidia controversy and financing risks cannot hinder the long-term trend of AI; investors should still maintain exposure

Julian Lafarge, Chief Market Strategist at Barclays Private Bank, stated that despite the uncertainty surrounding Nvidia CEO Jensen Huang's future, the uncertain returns on AI investments, and rising financing costs testing market confidence, investors should continue to participate in the AI market. Lafarge believes that AI is not a bubble but a technological revolution that will impact all industries, although its commercialization and infrastructure development cannot happen overnight.Lafarge pointed out that Nvidia is referred to as the "central bank of AI trading," but even if the company changes its CEO, it does not mean that the entire AI industry chain's trading needs to be re-evaluated or renegotiated. He compared the potential leadership transition at Nvidia to previous management transitions at Microsoft, Alphabet, and Amazon, arguing that a successor taking over does not necessarily weaken corporate value.However, Barclays lists interest rates and the financing environment as major risks that could disrupt the market. As the scale of AI infrastructure investment expands, the market's focus is shifting from whether the demand for computing power is real to whether the massive capital expenditures can generate sufficient returns. Data center construction also faces bottlenecks such as power access, equipment installation, and commercial operation cycles, while expectations of tightening Federal Reserve policies may also raise corporate financing costs and depress long-term cash flow valuations.Lafarge emphasized that the trillions of dollars in AI investment commitments cannot quickly translate into actual computing power delivery, and there will be significant divergence in investment returns among companies. Tighter financing conditions may change the pace of industry investment and competitive landscape, but it does not mean that the long-term demand for AI infrastructure will disappear. Barclays still prefers to maintain exposure to AI investments until there are clear signs of a significant slowdown in industry growth momentum.

first_img The Japanese government is considering establishing penalties for the out-of-control frontier AI and plans to announce a reform plan by the end of the year

IT Home reported on November 12 that the Japanese government is considering requiring AI companies to fulfill security obligations and introducing new penalties to address the risks of uncontrolled advanced AI. The Japanese government plans to announce a comprehensive reform plan by the end of this year, with relevant content confirmed in a closed working group meeting discussing AI legal systems. This move aims to address significant threats such as AI cyberattacks and loss of control, ensuring that the government can take action against malicious companies that refuse to negotiate.Currently, the business division of AI companies is becoming increasingly detailed, including various aspects such as basic research, foundational model development, and user services. The Japanese government will further discuss the scope of regulatory targets. If American AI large model companies are included in the regulation, how to effectively protect the rights and interests of Japanese users will also become a problem that needs to be addressed. For companies that refuse to cooperate in negotiations after issues arise, the Japanese government plans to issue enforcement orders when necessary and consider imposing penalties on companies that defy these orders. These measures are expected to primarily target incidents of uncontrolled advanced AI and attacks.

Data: Hyperliquid HIP-3 Nvidia's open interest contract size reached 535 million USD, second only to BTC, ETH, and HYPE

According to monitoring by Mlm on chain, Nvidia (NVDA) has currently become the largest HIP-3 market by open contract size on Hyperliquid, and it is the fourth largest market on the platform, only behind BTC, ETH, and HYPE. Its open contract size has reached 535 million dollars, growing 5.8 times in the past 7 days, which is 2.4 times the previous peak of 227 million dollars in June of this year.Currently, the NVDA market's daily trading volume has surpassed 1 billion dollars for the first time. The largest single position is a short position of 348,000 shares of NVDA held by Jump, valued at approximately 56 million dollars, which is a non-directional position. The largest directional position is a long position of 191,000 shares of NVDA, valued at approximately 30.7 million dollars, which has been gradually built up over the past 24 hours, with an average entry price of 174.43 dollars, currently showing an unrealized loss of about 2.6 million dollars.The market has a total of 9,517 trading wallets, of which 83% hold long positions; market makers account for 70% of the short open contract size. The average entry price for longs is currently 169.55 dollars, while the mark price is 160.66 dollars, which is about 5.2% lower than the average entry price. The total unrealized losses for all NVDA long positions have reached 14.6 million dollars.

first_img Analyze: The purchase of Montra tokens is a personal decision, and I apologize to the team

Analyze, responsible for the extensive marketing and operational strategies of the Elysium ecosystem token issuance platform Ascend, responded to related doubts about Spinor and the Ascend community. Analyze stated that the plan to purchase tokens from the ecosystem issuance platform Montra was made solely by him, and other team members were not involved in that decision. He mentioned that one or two days before the token launch, he transferred $100,000 to a wallet to establish a position, viewing this as a business arrangement for Ascend, believing that companies often purchase equity in competitors through strategic investments, and purchasing Montra was similar. Analyze stated that the relevant tokens were purchased after the launch, and any market participant could perform similar operations.Analyze also mentioned that after learning about the purchase of Montra tokens, a friend created a FOMO wallet and suggested transferring the tokens to that wallet. He admitted that a large number of comments were handled by him before the release, and he did not stop them, allowing them to continue, calling this practice extremely unprofessional and apologizing for it. Analyze stated that unexpected situations arose on the day of the launch, leading him to make irrational decisions, and he also pushed Tommy to acquire more supply, while Tommy initially expressed opposition. Analyze publicly apologized to Tommy, the rest of the Ascend team, and the community, stating that his decision put all parties in the current situation, and he takes responsibility for it.
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