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Author: Admin | 2025-04-29
Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta.Just these seven stocks lifted US markets around 15% in the first half of 2023. The outsized influence of the magnificent seven has prompted Nasdaq to carry out a special rebalancing of its Nasdaq 100 index.Many analysts believe tech stocks buoyed by investor interest in AI—including Nvidia—are overpriced and there’s bound to be some correction. At least until AI’s real-world benefits and profitability have had more time to be realisedIs ChatGPT to Blame?As the current poster child for AI applications, it’s clear that ChatGPT has played a major role in Nvidia’s meteoric share price rise. Many analysts believe tech stocks buoyed by investor interest in AI—including Nvidia—are overpriced and there’s bound to be some correction. At least until AI’s real-world benefits and profitability have had more time to be realised The company behind ChatGPT, OpenAI, worked with Microsoft to develop the supercomputing infrastructure needed to train the AI models including tens of thousands of expensive Nvidia GPUs.A senior Microsoft executive described the scale of the infrastructure as unprecedented, with “exponentially larger clusters of networked GPUs than anyone in the industry had tried to build”. WIll Nvidia’s Run of Good Fortune Continue? On average, analysts predict Nvidia’s price to rise to $US157.86 per share over the next 12 months, and list it as a ‘strong buy’.Positively, Nvidia is the market leader and supplier of choice for AI acceleration projects. Recent research suggests that continued development and commercialisation of ChatGPT will hinge on the processing power
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