If you had been fortunate in 2022, you would have invested in more BigTech in the S&P 500, in particular with Apple, Google, Microsoft, Nividea - stocks that have risen 75% in 2023.
We have already seen the Nasdaq composite jump by over 35% due to the big blitz of generative AI, which makes me wonder if are in a bubble, or will we see new AI companies dominate and start to disintermediate some of the players we have always bet on?
What is clear is that AI needs lots of processing power which means chipmakers are critical. Already Nvidia (NVDA) shares have increased by 209% in 2023, and trades at more than 220 times its trailed earnings.
Large language models (LLMs) that are the foundations of generative AI building blocks that provide the building blocks to develop applications. that mimic the ways a human writes and speaks. We must always remember LLM’s need large volumes of data to train on so companies like META have recently made its Llama (LLM) an opensource access. How long this will persist remains to be seen?
Other big bets are Qualcomm (QCOM)which is building its Snapdragon chip technology to process AI tasks directly on smartphones, without the aid of cloud-computing resources accessed via internet connections and is working on Meta. This is a very novel approach and gives us a vision of what will continue to be new approaches to cloud connections.
Continue reading: https://www.forbes.com/sites/cindygordon/2023/07/31/betting-on-ai-is-big-business/?sh=2758b2f27c72