Yes, I know, you knew already. Don’t tell me - tell your friends and any politician, exec or other person not in the know who are still thinking of AI as the solution to all of our problems instead of for the limited number of applications it’s actually good for.
If you’re investing in NVIDIA long term, now is as fine a time as any (although closer to $100 is a safer price). I think the short term pump is fading though, at least now it isn’t as safe as it would have been 6 months ago.
I think there’s a lot of chatter about those who dislike AI, but on general internet (Facebook, IG, TikTok, etc) there is a fairly significant portion of people who are all in on what it can do. Samsung, for all my complaints about them, have a pretty interesting set of AI features for their tablets. For example, gone are the days of using Photoshop to take out the background of an image, you can just open the photo app and hold on a subject and cut it out. Using it, it is basically perfect. It’s part of the Samsung AI suite, which can also do generative imaging, but most people agree that the usefulness of the former is far higher than turning a little doodle into an AI “sketch”.
This AI update they released has been around for almost a year now, and to be honest since NVIDIA’s stock split I’ve been hearing about the AI crash. And then NVIDIA hit 1T market cap, lol. I have a feeling that there are too many politicians who have investments to have it all crashing down. I would say that we are more likely to see problems with Taiwan affect the U.S. market before people’s disillusionment with AI will.
What I do think though is that the AI hype benefits for most companies is wavering in the market. 3 months ago you would be seeing every tech company benefiting from AI, and now many of those have dropped (for example, Micron as a DRAM manufacturer). But the general public? The AI music making app Suno is getting away with suing people (after getting a lawsuit themselves from a record label). Supposedly 2 billion people visit ChatGPT which is 5 times more than the next highest, Gemini.
Despite our spaces here disliking AI, I’m just not so sure that the wider general public feels the same way. Personally, in regards to the market, I had a feeling about NVIDIA back in April, got in around $100, got out at $145 a month ago and put some of it into NVDY for dividend growth instead - AMD too. They’re not going anywhere, AI or not like you said.
Also… I’ve run into a number of people who hate AI but use it anyway. I wonder if the AI hate does come around to start affecting a bottom line, might these companies just change the phrase and carry on as usual