Big Shift in AI is Coming!
1.
We might get a big sell-off in the US market if Japan raises interest rates.
They approved a stimulus because they finally have positive inflation so companies can invest and grow and people are better off spending then saving. They don’t want to lose it.
But they are also considering raising rates because their Debt/GDP ratio is above 200% and the central bank can’t print money at no cost anymore as inflation isn’t 0.
Thus, any increase in government bond yields skyrockets their interest payment and yields are surging as investors are pricing higher inflation due to stimulus and internal spending.
They are stuck between a hard place and rock.
If they raise rates, many investors who borrowed cheap in Japan and invested in the US will have to liquidate their positions and close their debt before they don’t suffer massive losses due to FX volatility. This can trigger a serious sell off.
Be very cautious putting money in the market now, especially large amounts.
2.
Big shift in AI is coming..
$Brookfield Corp(BN)$ predicts that compute demand for AI training as a % of total AI compute demand will peak next year, then the demand will shift to inference.
This means that chips focused on efficient inference will take market share from NVDA.
They estimate that custom ASICs will make up a quarter of the installed chip base in 2035.
This is the real $NVIDIA(NVDA)$ short thesis.
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