BlockBeats News, August 27th - Charu Chanana, Chief Investment Strategist at Sheng Bao Market, stated that NVIDIA's (NVDA.O) performance strongly validates the artificial intelligence infrastructure investment thesis.

She pointed out that as capacity continues to expand, storage, networking, optical communication, power infrastructure, and some cloud service providers will all benefit from it. However, the market is increasingly demanding to see returns from AI investments. Storage remains one of the most clear-cut beneficiary areas, and NVIDIA's profit margin guidance confirms that the supply is still tight. Following NVIDIA's earnings release, Asian storage chip stocks broadly rose.

However, Chanana added that the next phase of the storage chip market will increasingly depend on AI demand and whether the storage capacity carried by each accelerator can absorb the continuously increasing supply capacity, rather than relying solely on supply shortages to drive price increases.