There are always points at the financial height when market observers ask if the happiness is gone.
The latest reasons for the stability of artificial intelligence in artificial intelligence with NVIDIA and AMD with billions of dollars in open with billions of dollars.
Here we answer some questions about what these deals say about the AI stock market frenzy.
Why are NVIDIA and AMD market viewers?
Some observers are related to the circular nature of deals. Under the terms of the NVIDIA transaction, the open will pay cash to the NVIDIA for chips, and NVIDIA will invest in the open for uncontrollable shares.
Leading British tech investor James Anderson said he was parallel to vendor financing, where a company provides financial support to a consumer to buy its products. This is an uncertain scenario if these users have excessive hope. The Vendor Financing Turn of the thousands.com had a feature of the Bubble.
Anderson said, “This is not as if many of the telecom suppliers were in 1999-2000, but it has some special poetry. I don’t think it makes me feel completely relieved from this point of view.”
AMD Dell also mixed the Openia with NVIDIA as well as another chip maker. Under this agreement, Openi will use hundreds of thousands of AMD chips in its data center – AI tools such as Chat GPT’s central nervous system – and will have the opportunity to buy 10 % AMD. All of this is driven by maximum computing power through the thirst of the open and colleagues to reach their models to better performance – as well as meet the demand.
The transactions like NVIDIA and Openi have pointed to the situation that “visible, smell and speak like a bubble,” said Nvidia and Openi, an investment bank, an investment bank, an investment bank, an UK Investor Strategist in Sixo.
What are the other signs of the bubble?
Anderson flagged rising prices in leading AI companies. Open is now worth 500bn (2 372bn) compared to 7 157bn last October, while recently Anthropic has almost tracked his diagnosis, which has risen from $ 60 billion to $ 170 billion in March last month. Anderson said the scale of value increased “bothered me”. According to the Tech News site, the Open allegedly posted 3 4.3bn income in the first half of this year.
Recent shares prices have also shocked experienced market viewers. For example, during the stock market trade on Monday after the announcement of the Open AI, the AMD briefly earned $ 80 billion, while Oracle -Data Centers benefited from the demand for AI infrastructure – an increase of about $ 250 billion in a day after announcing better than the expected results.
There is also a sharp increase in the costs of a huge capital, which refers to spending on non -staff costs such as buildings and equipment. Big Four AI “Hypersclers” – Facebook’s parents Meta, Google owner alphabet, Microsoft and Amazon – are expected to cost $ 325 billion this year, which is about Portugal’s GGDP.
Is AI justifying investors’ enthusiasm in adoption?
In August, trust in AI Boom was turned up by the Massachusetts Institute of Technology published the research, stating that 95 % of organizations were receiving zero withdrawal from their investment in Generative AI. The study states that the matter was not the standard of the model, but how they were used. It states that this is a clear manifestation of “Geni Distribution”, headed by children under the age of 19- or 20 years old, reporting the jump in revenue from the deployment of AI tools.
This report is with AI infrastructure stocks such as NVIDIA and Oracle. The consulting firm came two months after the McKeni and Company, which said that eight out of 10 companies were reported using Genai, but the same proportion report has no significant effect on their bottom. The reason for this is that AI tools are being used for wider purposes, such as preparing a meeting minutes and highlighting specific purposes, such as dangerous suppliers or creating ideas, McCannee said.
All of them make investors uncertain because one of the major promises of AI companies such as Google, Openi and Microsoft is that if you buy their tools, they will improve productivity – a measure of economic performance.
However, there are other clear indications of AI’s widespread embracing. This week, Openi said Chattagpat now uses 800 million people a week, which has been obtained in March by Openi from 500 million data. Open’s chief executive Sam Altman is firmly convinced that the demand for paying the AI will continue to “increase” rapidly.
What does a big picture show?
The current situation feels like “we are at a confluence where the lights shine different colors, says Deutsche Bank Research Institute’s thematic strategy.
He says red lights are a lot of capital costs, where “the current generation of chips can be old before investment payment” and in the rising prices of private companies like Openi.
The Amber Signal “brilliant seven” is much higher than doubling US -tech stock prices. This is offered in proportion to their price-earning- a measure that has a low stock price or a higher price- which is below the historical level by other tech firms in the 2000.com bubble. The Cox also suggests a recent supplier/customer to keep an eye on the “complex investment structure” seen in deals.
Cox added that on the Green Light Side, many AI investment is well -established, well -investing companies such as alphabet, meta, Amazon and Microsoft, mostly financing costs with its free cash flu.
He added: “We are just scratching the level in terms of technology capabilities and there is more road to the companies that adopt AI.”
