This report explains why Nvidia and other hardware companies which provide the pipes upon which AI systems could work are doing well in the market: “According to Bloomberg’s estimates, hardware will make up the bulk of the $1.3 trillion of revenue, accounting for $641 billion by 2032, of that $641 billion, $168 billion will come from devices, and $473 will come from infrastructure.” Of course, that has been the paradigm, before the Likes, Clicks, Shares, etc, someone has to build the right computing device to process those.
Nvidia’s stock has tripled since the start of the year, making it “by far” the best performer in the S&P 500, The Wall Street Journal reports. And investor enthusiasm for Nvidia’s graphics processing units — used to power artificial intelligence programs — means the company’s shares could keep climbing. Out of 49 analysts surveyed by financial data firm FactSet, 41 have a buy rating on the chipmaker’s stock, up from 30 in October. Some skeptics question the stock’s valuation, noting it is trading at 49 times forward earnings; the S&P 500 is trading at 18.2 times earnings. (LinkedIn News)
Processing, computing and making sense of numbers will remain the most important aspect of the market system? Why? Pythagoras was asked many years ago to explain the fundamental component of the universe, he returned NUMBERS. Simply, everything we do is numbers and those who can build machines to make sense of numbers will win the future!
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“The world is poised to see an explosion of growth in the generative AI sector over the next ten years that promises to fundamentally change the way the technology sector operates,” Mandeep Singh, senior technology analyst at Bloomberg Intelligence and lead author of the report said in the press release.
“The technology is set to become an increasingly essential part of IT spending, ad spending, and cybersecurity as it develops,” Singh added.
While there is growing safety concern about generative AI, the technology has recorded explosive growth. OpenAI’s ChatGPT became a darling globally soon after it was launched in November, recording more than 100 million users in just about two months.
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