A history of bubbles from BofA shows we may still be in the very early stages of an AI bubble.
Source: BofA, TME
Is AI losing traction?
Source: Michael A. Arouet
AI hype has hit a whole new level: Super Micro Computer is now the 161st largest public company in the United States.
One year ago, Super Micro Computer stock, $SMCI, was worth less than $5 billion. Today, it is worth $55 billion and up over 1000% from its 2023 low. Since January 1st, the stock is up a massive 230% adding ~$30 billion in market cap... Source: The Kobeissi Letter
Nvidia's red-hot rally to start 2024 has pushed many Wall Street analysts to adjust their targets
at least 5 firms hiking price targets on the artificial intelligence-darling this month. This week, UBS lifted its target to $850 from $580, Mizuho raised its target to $825 from $625. Demand for Nvidia’s H100 AI accelerators continues to outstrip supply, Mizuho’s Vijay Rakesh wrote in a client note, calling the stock the best AI play. Source: Bloomberg, HolgerZ
In Case You Missed It: On February 8th the Wall Street Journal reported that OpenAI CEO Sam Altman wants to raise up to $7 trillion
For a “wildly-ambitious” tech project to boost the world’s chip capacity, funded by investors including the U.A.E. — which in turn will vastly expand its ability to power AI models. To put numbers in perspective: $7 TRILLION is around ~10% of global GDP…Or the combined market cap or BOTH Microsoft & Apple. That means he wants to totally reshape the global semiconductor industry. By the way, where will all the energy needed come from? Source: VB, Creative Capital, WSJ
Google pledges 25 million euros to boost AI skills in Europe
Google opens new tab has pledged 25 million euros ($26.98 million) to help people in Europe learn to use artificial intelligence (AI). Announcing the funding on Monday, the tech giant said it had opened applications for social enterprises and nonprofits that could help reach those most likely to benefit from training. The firm will also run a series of “growth academies” to support companies using AI to scale their companies and has expanded its free online AI training courses to 18 languages. The data centre will be located in the town of Waltham Cross, about 15 miles (24.14 km) north of central London. source : reuters
LESS IS MORE... or MORE WITH LESS.
This data is eye-opening. The number of workers needed at S&P 500 companies to generate $1 million in revenue has gone from: 7+ in pre-1990 period to only 2 in 2024 With AI developments, this metric is likely to continue declining Source: Game of Trades
$NVDA's top 4 customers account for 40% of revenues, and every one of them is actively working on their own custom AI silicon.
AI capex will keep flowing to NVDA in the short run, but what will happen when initial training is done and inference is done locally? Source: Supreme Bagholder
