Shares of Nvidia are up 4% today and set for a seventh consecutive week of gains. The rally in shares of the chipmaker since the start of November has been one of the most-impressive market moves ever. It’s now the third-largest company in the world, behind only Microsoft and Apple. It’s added $300 billion in just the past two days, which is largest than all the companies in the German DAX combined.
NVDA daily
Let’s say the market is right about Nvidia and the opportunity for generative AI.
That would extraordinarily deflationary in a way the world has seldom (never?) seen before. A flood of money into GPUs will replace millions of workers while making the remainder far more productive. AI itself will also make vast contributions to invention that will make people healthier and more efficient.
Now the market isn’t always right — particularly on timelines — but it’s now clear that companies are going to spend whatever it takes to give AI a real shot. I’ve heard the dystopian takes but I’m an optimist and I’ve seen first-hand how image generation can make things more beautiful and interesting.
AI image
The progress in that space has been incredible and the next step (only months away) will be video with the same kind of fidelity followed by 3D renderings. In the LLM space, the refinement and progress is mind-blowing.
We’re still just scratching the surface of this technology but the promise is immense.
