Close menu




August 28th, 2023 | 07:00 CEST

AI hype soon over? Deutsche Bank, NVIDIA, Globex Mining

  • Mining
  • Gold
  • Investments
  • chips
  • AI
Photo credits: pixabay.com

In September 2022, NVIDIA and Deutsche Bank announced an innovation partnership focused on Artificial Intelligence (AI). The goal: to enhance and secure financial services. A lot has happened since last year's announcement. AI is seen as a productivity booster and "the next big thing." The prices of shares such as NVIDIA have also multiplied since then. This even makes partner Deutsche Bank uneasy. We highlight risks and show alternatives.

time to read: 3 minutes | Author: Nico Popp
ISIN: DEUTSCHE BANK AG NA O.N. | DE0005140008 , NVIDIA CORP. DL-_001 | US67066G1040 , GLOBEX MINING ENTPRS INC. | CA3799005093

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    NVIDIA: Even AI partner Deutsche Bank remains cautious

    Last week, chip manufacturer NVIDIA scored with outstanding quarterly figures. Quite a few observers had expected that the share could initiate a correction immediately after the figures. The phenomenon of sales following positive company announcements is quite common. However, NVIDIA's results were so good that the stock exploded again. Still, investors should keep in mind that NVIDIA by no means has some sort of monopoly on AI-related sales. The Company produces relevant chips, and computing power is always needed in AI applications. That said, NVIDIA is also far from unrivaled. The billion-dollar subsidies into the chip industry in recent months indicate that there could soon be an oversupply of chips.

    As in the past, subsidies play a decisive role in this. If the state guarantees subsidies, companies need not fear overcapacities, at least in the short and medium term - after all, the investment was low-risk thanks to the state support. If, as is currently the case, several subsidy-driven investments come together, this can lead to oversupply on the market in the long term. Even Deutsche Bank - NVIDIA's AI partner - maintains its Hold rating for the highly sought-after chip stock. However, the German bankers raised the price target to USD 560. Accordingly, there would still be a little more than 20% air to the upside.

    "Adyen Moment" in the chip industry not off the table

    From a chart perspective, the recent hype may have been a flash in the pan - the stock failed to break above the July high. In addition, the market should continue to expect extraordinary things from NVIDIA in the coming quarters. The risk of the Company disappointing investors in the near future is not off the table. The danger of NVIDIA experiencing their "Adyen Moment" remains.

    Globex Mining as a beneficiary of several trends at once

    But where do opportunities even lie in the stock market? One industry that is benefiting from both global subsidies, the nearshoring trend, and digitization and the increased use of AI is the commodities industry. Whereas critical metals, such as the rare earths needed in chips, rechargeable batteries and other modern technologies, used to come predominantly from China, alternative deposits are now moving into the spotlight. The same applies, with some exceptions, to vanadium, lithium and other industrial metals.

    The Canadian company Globex Mining is an investment company with over 200 raw material projects in its portfolio. The unique feature: All projects are located in North America. The trend of nearshoring states that supply chains are increasingly regionalized. Instead of relying on lithium from South America, which may not be mined in an ESG-compliant way and where there may be dependencies on China due to credit, more and more corporate decision-makers prefer suppliers from safe jurisdictions. The US and Canada are among the top choices for products that are also manufactured in North America. Examples include e-cars, semiconductors and products related to regenerative energy.

    Alkali deal creates fantasy - market capitalization of only CAD 45 million

    For about a week, the share of Globex Mining has been on a small upward flight - the Company, which is currently valued at only about CAD 45 million, has gone up by about 10%. The share price increase may also be due to a transaction the Company announced last week. Accordingly, Edison Lithium wants to acquire exploration rights to alkali projects in the Canadian district of Saskatchewan from Globex. The deal calls for a small cash payment of just USD 35,000, but the further details have more potential: In addition to 156,250 shares of Edison Lithium, Globex will also receive a 2% contingency based on sales of any potential commercial production from the properties. Such alkali projects are related to heat storage, innovative battery technology, and application areas such as the glass and paper industries.

    Globex Mining's stock offers access to numerous resource projects around almost all common commodities. The recent exit suggests that more gems remain dormant in the Globex portfolio. Instead of selling the projects, Globex relies on selected partners to develop projects and secures a share of the profits. This business model could attract attention if commodity prices continue to rise. Investors can take a closer look at Globex as a speculative underlying investment - while greed rules around AI and high volatility is to be expected, Globex Mining stands for tangible values, which are somewhat underestimated than overestimated by the market.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by André Will-Laudien on October 22nd, 2025 | 07:35 CEST

    Gold and silver – New record highs! Keep an eye on Barrick, Agnico Eagle, Desert Gold, and First Majestic!

    • Mining
    • Gold
    • Silver
    • Commodities

    Silver prices broke through the USD 53 mark for the first time at the beginning of the week, and gold is attempting to reach the USD 4,300 mark. Precious metal enthusiasts have been anticipating these moves for a long time, but traders on the futures exchanges clearly have not. In addition to extreme physical scarcity, the exploding prices are also attributed to heavy short squeezes. The physical silver market is under tremendous pressure as the availability of real metal to hedge the numerous futures transactions is severely limited. This imbalance is causing erratic market reactions and driving the spot price into an almost exponential sell-off. The current rally in precious metals is driven by geopolitical uncertainty, industrial demand factors, and the search for safe investments. In times of excessive government debt, the weakness of the US dollar is now also weighing on the market. Which companies should investors keep a close eye on now?

    Read

    Commented by Fabian Lorenz on October 22nd, 2025 | 07:30 CEST

    SHARE PRICE EXPLOSION for commodity gems!? Nordex, Aurubis, Salzgitter, and Power Metallic Mines!

    • Mining
    • Lithium
    • Copper
    • Commodities
    • Steel
    • Wind
    • renewableenergies

    Shares in the commodities and precious metals sector have been unstoppable in recent weeks. Power Metallic Mines could soon become an explosive latecomer to the rally. There are good reasons for this, as the CEO recently made clear. At Aurubis, the rally appears to be over for now. Analysts are skeptical, and the major shareholder is cashing in his shares - albeit in an unusual way. So should you sell now, too? The past few months have been unusually positive for Nordex. There is currently no sign of a slump in the wind business. What are analysts saying after the latest order intake?

    Read

    Commented by Carsten Mainitz on October 22nd, 2025 | 07:25 CEST

    The stock market success stories Almonty Industries, TKMS, and Steyr Motors are opening a new chapter - and it is still not too late to get in!

    • Mining
    • Tungsten
    • CriticalMetals
    • Automotive
    • hightech
    • Defense

    The trade conflict between the US and China is intensifying and reaching a new strategic dimension. Beijing is deliberately restricting exports of critical raw materials and rare earths that are indispensable for high-tech industries, defense, and the energy transition. Western industries are coming under pressure, security of supply is faltering, and prices are rising. Meanwhile, the beneficiaries of this situation, such as producers of critical raw materials, are experiencing a boom. What happens next, and what does the stock market newcomer TKMS have to do with it?

    Read