The artificial intelligence sector is currently navigating a period of intense investment, significant market fluctuations, and evolving legal and financial scrutiny. On November 10, 2025, AI and tech stocks experienced a strong rebound, with the Nasdaq achieving its best day since May, gaining 2.27%. This rally saw Nvidia shares climb 5.8% and Taiwan Semiconductor (TSM) gain 3%, following a meeting between Nvidia CEO Jensen Huang and TSM to discuss increasing production capacity. Despite this positive market movement, concerns about a potential 'AI bubble' persist. TSMC, a crucial supplier for tech giants like Apple and Nvidia, initially reported its slowest sales growth in 18 months for October 2025, with revenue up only 11.4% year-on-year. However, TSMC's stock later rose over 3% on November 11, 2025, after the company announced a record October revenue of NT$367.5 billion, or $11.9 billion, marking a 16.9% increase from the previous year. This growth is largely attributed to high demand for AI chips and advanced manufacturing processes like 3-nanometer and CoWoS packaging. TSMC anticipates strong performance in the fourth quarter, forecasting revenue between $32.2 billion and $33.4 billion, and plans substantial capital expenditures of $40 billion to $42 billion for 2025 to expand its manufacturing capabilities. Nvidia continues to be a central player in the AI hardware market. Bank of America analyst Vivek Arya reaffirmed a buy rating for Nvidia stock, setting a $275 target price, even as questions arise regarding the profitability of AI software companies like OpenAI, which is currently unprofitable and plans to spend $1.4 trillion. Nvidia CEO Jensen Huang announced a massive $500 billion in AI chip orders for the next five quarters, highlighting robust hardware demand. SoftBank, a significant investor, sold its entire $5.8 billion stake in Nvidia on November 11, 2025, with founder Masayoshi Son intending to increase investments in new AI ventures, including OpenAI. This move briefly caused Nvidia's stock to drop 4%, though market strategists suggest it may signal OpenAI's plans to go public rather than a negative outlook for Nvidia, whose stock has surged 66% in six months and over 1085% in three years. Major tech companies are also committing vast resources to AI development. Alphabet is investing $91 billion to $93 billion in AI tools, with its Google Cloud segment experiencing rapid growth. Meta Platforms, which serves over 3.5 billion daily users, plans to invest $70 billion to $72 billion in AI to enhance its social media platforms. Micron Technology holds a unique position as the only US manufacturer of high-bandwidth memory (HBM) chips, directly benefiting from the AI boom. Digital Realty Trust, with over 300 data centers, plays a critical role in housing powerful AI computers utilizing Nvidia chips, with plans for 4.3 gigawatts of new capacity. In AI infrastructure, Vertiv shows a strong outlook with raised 2025 guidance and growing backlogs, contrasting with Super Micro's challenges of declining gross margins and delayed revenue recognition. However, the long-term financial returns of these massive AI investments are under scrutiny. A J.P. Morgan report suggests the AI industry needs $650 billion in annual revenue by 2030 to achieve a 10% return on investments, cautioning about potential overcapacity, reminiscent of the early telecom industry. Concurrently, OpenAI faces legal challenges; on November 11, 2025, a German court ordered OpenAI to pay GEMA, a German collecting society, for using song lyrics to train ChatGPT versions 4 and 4o, citing copyright infringement. OpenAI disagrees with the ruling and is considering an appeal. For investors seeking a more diversified approach amidst AI bubble concerns, the First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) offers an equal weighting across its 113 holdings, ensuring no single stock dominates its portfolio.
Key Takeaways
- AI and tech stocks, including Nvidia and TSMC, experienced a strong rebound on November 10, 2025, with the Nasdaq gaining 2.27%.
- Nvidia CEO Jensen Huang announced $500 billion in AI chip orders for the next five quarters, and Bank of America maintains a buy rating with a $275 target price.
- TSMC reported record October revenue of $11.9 billion, up 16.9% year-on-year due to AI chip demand, and plans $40 billion to $42 billion in 2025 capital expenditures.
- SoftBank sold its entire $5.8 billion stake in Nvidia to fund new AI investments, including in OpenAI, potentially signaling an OpenAI IPO.
- Alphabet plans to invest $91 billion to $93 billion in AI tools, while Meta Platforms intends to invest $70 billion to $72 billion in AI for its platforms.
- Digital Realty Trust is expanding its AI infrastructure, planning 4.3 gigawatts of new data center capacity to house AI computers using Nvidia chips.
- Micron Technology is the sole US manufacturer of high-bandwidth memory (HBM) chips, a critical component for AI.
- A German court ruled that OpenAI must pay GEMA for using copyrighted song lyrics to train ChatGPT versions 4 and 4o, a decision OpenAI plans to appeal.
- J.P. Morgan estimates the AI industry needs $650 billion in annual revenue by 2030 to achieve a 10% return on investment, cautioning about potential overcapacity.
- The First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) offers a diversified investment option with 113 equally weighted holdings, addressing AI bubble concerns.
Digital Realty builds homes for AI computers
Digital Realty Trust owns data centers that house powerful AI computers, like those using Nvidia chips. The company has over 300 data centers and plans to build more, with land for 4.3 gigawatts of new capacity. This makes Digital Realty a key player in the growing AI infrastructure market. While its dividend yield is 2.9%, it offers investors a way to participate in the AI boom. The company's market cap is $58 billion and its current price is $169.33 as of November 10, 2025.
Three affordable tech stocks for AI investors
Investors can find affordable tech stocks with strong AI potential, including Alphabet, Meta Platforms, and Micron Technology. Alphabet is investing $91 billion to $93 billion in AI tools and its Google Cloud is growing fast. Meta Platforms, with over 3.5 billion daily users, plans to invest $70 billion to $72 billion in AI to enhance its social media platforms. Micron Technology, the only US maker of high-bandwidth memory (HBM) chips, benefits from the AI boom. These companies offer unique opportunities for investors in the AI sector as of November 10, 2025.
Diversified AI ETF offers safer investment choice
Investors worry about an AI bubble, especially with Nvidia making up a large part of many tech funds. The First Trust Nasdaq Artificial Intelligence and Robotics ETF, ticker ROBT, offers a safer way to invest in AI. This ETF uses an equal weighting approach, meaning no single stock dominates its 113 holdings. Its largest position is just over 2%, providing broad diversification across AI enablers, engagers, and enhancers. The ETF's current price is $53.97 as of November 10, 2025.
TSMC sees slowest sales growth in 18 months
TSMC, the world's largest chipmaker, reported its slowest sales growth in 18 months for October 2025, with revenue up only 11.4% year-on-year. This slowdown raises concerns about a potential AI bubble, despite massive global investments in AI development. TSMC, a major supplier for companies like Apple and Nvidia, is a key indicator for the tech sector. While AI demand remains strong, the rapid growth seen recently may be slowing to a more stable pace. The market will closely watch future earnings for insights into the AI sector's direction.
TSMC stock rises on strong AI chip sales
TSMC stock climbed over 3% on November 11, 2025, after reporting record October revenue of NT$367.5 billion, or $11.9 billion. This represents a 16.9% increase from last year, driven by high demand for AI chips. Advanced technologies like 3-nanometer and CoWoS packaging are crucial for AI chip production. TSMC expects strong performance in the fourth quarter, forecasting revenue between $32.2 billion and $33.4 billion. The company plans to invest $40 billion to $42 billion in capital expenditures for 2025 to expand its manufacturing capabilities.
Bank of America maintains Nvidia buy rating despite AI concerns
Bank of America analyst Vivek Arya reaffirmed a buy rating for Nvidia stock, setting a $275 target price. This comes despite some skepticism about the profitability of AI software companies like OpenAI, which is currently unprofitable and plans to spend $1.4 trillion. Nvidia CEO Jensen Huang announced $500 billion in AI chip orders for the next five quarters, showing strong hardware demand. Analysts believe the concerns about AI spending are overstated for the near and medium term. They expect Nvidia's sales and earnings per share to grow significantly.
AI and tech stocks rebound strongly
On Monday, November 10, 2025, AI and tech stocks saw a strong rebound, with the Nasdaq gaining 2.27%, its best day since May. Chipmakers and AI infrastructure companies led the rally. Nvidia shares rose 5.8% and Taiwan Semiconductor (TSM) gained 3% after Nvidia CEO Jensen Huang met with TSM to discuss increasing production. Several companies, including Paramount Global and Skydance, CoreWeave, and Rigetti Computing, also released their third-quarter earnings reports. The Dow, S&P 500, and Russell 2000 also saw gains.
Super Micro and Vertiv offer different AI investment paths
Super Micro and Vertiv are both involved in the AI boom, but they present different investment opportunities. Super Micro, despite being an early player, faces challenges with declining gross margins and delayed revenue recognition. In contrast, Vertiv has a strong outlook, having raised its 2025 guidance and showing a growing backlog of orders. While Super Micro stock appears undervalued, Vertiv's stock has a high price-to-earnings ratio. Investors should consider these differences when looking at these AI infrastructure companies.
SoftBank sells Nvidia stake to fund new AI investments
SoftBank sold its entire stake in Nvidia, earning $5.8 billion, as founder Masayoshi Son plans to increase investments in artificial intelligence. SoftBank's portfolio already includes major AI players like OpenAI and Oracle. This move helped SoftBank's share price surge by 78% in the three months ending September. The company aims to balance new AI investments with concerns about high company valuations and infrastructure costs. The sale was reported on November 11, 2025.
German court orders OpenAI to pay GEMA for song lyrics
On November 11, 2025, the Munich Regional Court ruled that OpenAI must pay GEMA, a German collecting society, for using song lyrics to train ChatGPT. The court found that OpenAI infringed the copyrights of nine German artists, including Inga Humpe and Herbert Grönemeyer. This landmark decision applies to older versions of ChatGPT, specifically 4 and 4o. OpenAI disagrees with the ruling and is considering an appeal, stating that the case raises new legal questions about AI and copyright. GEMA filed the lawsuit in November 2024.
JP Morgan report questions AI investment returns
A J.P. Morgan report suggests the AI industry needs $650 billion in annual revenue to achieve a 10% return on investments by 2030. This amount is comparable to every iPhone user paying $35 per month or every Netflix subscriber paying $180 per month. The report warns that AI growth might not be steady and could face issues like overcapacity, similar to the early telecom industry. While some AI companies like OpenAI show significant revenue, the long-term profitability of these massive investments remains uncertain. The report predicts both big winners and losers in the AI ecosystem.
SoftBank sells Nvidia stake sparking investor questions
SoftBank sold its entire $5.8 billion stake in Nvidia, causing Nvidia's stock to briefly drop 4% on November 11, 2025. This move raised questions among investors about Nvidia's future, especially as SoftBank is now investing in OpenAI. However, market strategist Jay Woods believes SoftBank's sale signals OpenAI's plans to go public, not a negative outlook for Nvidia. Despite recent concerns about high valuations and AI spending, Nvidia's stock has surged 66% in six months and over 1085% in three years. Some analysts, like Michael Burry, still express caution about AI companies' accounting and spending.
Sources
- This Real Estate Company Is Becoming a Modern-Day Shovel-Seller to the AI Sector. Here's Why Investors Should Pay Attention.
- 3 Cheap Tech Stocks to Buy Right Now
- Is This Low-Cost AI ETF Your Best Value Play for the Next 5 Years?
- TSMC Sales Growth Lowest in 18 Months Amid AI Bubble Fears
- TSMC (TSM) Stock: Climbs as AI Demand Fuels 17% YoY Sales Surge
- Bank of America revamps Nvidia stock forecast on AI skepticism
- Big Bounceback Trading Day for AI & Tech
- Super Micro Vs. Vertiv: Picks And Shovels Of AI Boom
- SoftBank Sells Entire Nvidia Stake Ahead of AI Investment Push
- Open AI must pay GEMA licence fee for ChatGPT
- $650 billion in annual revenue required to deliver 10% return on AI buildout investment, J.P. Morgan claims — equivalent to $35 payment from every iPhone user, or $180 from every Netflix subscriber 'in perpetuity'
- SoftBank just sold out of Nvidia. Should you?
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