US stock market has been witnessing a new phenomenon known as CHATGPT chatbot since late 2022 with Microsoft stake in it , Open AI was the creator which IS still private.
Generative AI was needed for accelerated computing which NVDA is the sole leader while others are trying to follow 1 year late with much weaker accelerated computing like AMD.....
NVDA not only is the leader BUT its expanding its lead with more powerful H100 & H200...
NVDA used to update its GPU chips every 2 years....
NVDA with its commanding lead time of 1 year in GPU chips has decided that IT IS NOT good enough...
Thus comes GTC 2024....Woodstock of Generative AI....or when the whole world will understand what generative AI is all about....
Once everyone understands Generative AI their " jaw will drop "
Many many professions will be impacted with "accelerated computing "
Productivity will rise 100 fold...that is a very conservative number....
SO...what will happen in GTC2024.....
It IS a 4 day Developer conference.....Starting Monday.....
Keynote address by NVDA CEO @ 4PM EST
NEW GPU processor for AI computing will be introduced B100 codenamed " Blackwell " to replace H100 & H200....
This new GPU after only 1 year, will maintain NVDA lead in Accelerated computing .....
With all the talk of Bubble in NVDA stock price, currently NVDA valuation is 10th in Semiconductor stocks....never mind in technology or in entire stock market...It should be #1 in entire world stocks...where It could be in few more quarters....
NVDA is only trading @ 35 times forward earning....what a bargain.....
With all of the explanation given, It IS extremely important for all traders to fully understand ramification of Generative AI....in every aspect of life....
We are entering a new era of accelerated computing where faster & faster GPU chips are needed to generate results sought by billions....
YES AI related stocks should get a new resurgence with GTC2024....
Good luck with your own research & comfort level...
BLOG does NOT give buy or sell.
Saleem
8 comments:
Hi Stocktrader,
Last week UP 2.19%
YTD UP 2.27%
Saleem
Hi Saleem,
Thanks for a nice recap on NVDA / AI analysis. People are still waiting to see if AI is a fad or not before jumping on the bandwagon. The AI train just started for a long journey. Apple in talks to let Google's Gemini power iPhone AI features is a nice boost to AI stories...
Michael
Hi Michael,
Thanks for your valued feedback on my Sunday BLOG.
YES GOOG & AAPL collaboration is a win win for both...
Good luck with your strategy!
Saleem
Hi Stocktrader,
Sold 50% GOOG @ $25.37 in Toronto
Saleem
Hi Saleem,
Way to stick with GOOG and get that big pop!
I agree that AI has a long way to go to impact every business on earth. It is up to us to find which companies will profit the most from it at these levels. NVDA is the clear, easy choice - any of the rest becomes a bit tougher...
Stocktrader
Hi Stocktrader,
Thanks for your feedback much appreciated....
YES...nothing beats good old fashioned FA / TA to acquire the right trade...
AI is moving @ an accelerated pace NOW....
Good luck with your usual deep analysis....
Saleem
Hi Saleem,
Last week: -2.07% (YTD: +3.20%)
Portfolio Leaders: AGCO SOXS
Portfolio Laggards: IONQ ZENV FLYW
The market was hit with inflation concerns last week which prompted pullbacks in some market areas. Small caps were hit the hardest, as one might expect, and we await more thoughts from the Fed this week. NVDA's GTC this week will set the tone for the AI trade ahead, overpowering likely anything the Fed might say. Overall, I think inflation is still on the decline, albeit on a bumpy path, and I expect ultimately the markets will still resolve higher once again.
Holdings: TZA(x3) AGCO MTRN FLYW IONQ PSNL ZENV, cash 9%
Stocktrader
Hi Stocktrader,
Added 70% NVDA @ $83.87 in Toronto...
Saleem
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