Can you make your own AI chips??
Since the introduction of ChatGPT last November, the semiconductor industry has witnessed a huge rally due to AI hype! Notably, $NVIDIA Corp(NVDA)$
There's reports citing that OpenAI, an AI leader backed by Microsoft (MSFT) whose launch of the ChatGPT chatbot kicked off an AI investing frenzy, is exploring making its own AI chips. Amid a shortage of chips to fuel AI growth, OpenAI is also considering options to diversify its suppliers beyond Nvidia.
While NVIDIA is far in the lead, this state will not likely last for a long time. In addition to AMD's MI300 AI chips coming out in 2024, Intel is also expected to bring out its Gaudi and Falcon Shores line of AI chips. Another key development is a prototype chip developed by IBM, which is stated to provide AI computational capabilities at significantly lower power consumption requirements.
With more competition coming in the next few quarters, we as consumers might benefit from potential price wars but these AI companies would likely suffer from lower profit margin. Hence, is the current valuation still fair?
The AI bubble is slowly forming and I believe most AI-related stocks are way overvalued. With escalating tensions between US and China, it is likely to affect the semiconductor industries and export bans may lead to further downside for most semiconductor companies. One should ask yourself if the current valuation is fair instead of having "fear of missing out". I'll probably wait for the next pull-back before entering again. What about you?? Let me know your thoughts!!
$Semiconductor Bull 3X Shares(SOXL)$
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Open AI dumps Nvdia AI chips. Citing concerns over speed, compatibility, and pricing. Sources comment that there are cheaper and better competitors. Sell while you can.
Nvidia will come in at 17 billion for the quarter which makes since as the revenue estimates were just raised over the last month. Then the price to earnings is going to decline by two-thirds and stock price is off to the races.
Look at the trend of the option traders, I see NVDA is second to only TSLA. It is very interesting, the Fed itself is now positive to hold the rate. Every thing is hot. War is not an issue because we know how it will end. Pick your choice.
LOL NVDA just “fell 5” in 1/1000th of a second while my AI play SMCI is up $15
Yeah there is AI bubble but it is still the future trend.
....and the opening bell goes to.....LONGS!!
Great ariticle, would you like to share it?
Good
Really
Nice project