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Uh, they do provide some numbers though... "On its own, the price of Nvidia is responsible for an enormous slice of the stockmarket recovery. Since the end of

Uh, they do provide some numbers though... "On its own, the price of Nvidia is responsible for an enormous slice of the stockmarket recovery. Since the end of November the firm’s market capitalisation has soared from under $400bn to $925bn—accounting for a fifth of the rally. Add Nvidia’s surge to the growing market capitalisations of the 13 other firms with ai exposure and a remarkable 73% of the broader rally is explained." "In November the average price to current earnings multiple of an s&p 500 firm, excluding the 14 most exposed to ai, was around 27. As we went to press, the multiple had dipped to 26. Meanwhile, the average multiple of firms in our ai bucket had leapt from 43 to 77." Not sure what you would expect - they just point to the fact that most of the rally is achieved through the 'AI' companies - the rest of the index is actually down, or mostly down. That's fact. What more do you want to be more persuasive ?

megablast 3y ago
So nvidia, detecting it is training an ai to pick stock to invest in, prioritises nvidua stock.
paxys 3y ago
Almost all of S&P 500's recent rally has come from 5 companies - Nvidia, Apple, Google, Microsoft and Amazon (https://www.axios.com/2023/06/01/sp500-tech-companies-stock-price https://www.axios.com/2023/06/01/sp500-tech-companies-stock-...). Are they all "AI companies"? Sure, but they also do basically everything else. So it's still a pretty flimsy correlation. A more reasonable explanation is that there was an overcorrection in big tech valuations during the downturn a couple years ago (while they are all continuing to make record profits quarter after quarter), and now after layoffs and cost cutting the market is slowly normalizing in their favor.
- TheAlchemist 3y ago
  Amazon and Apple are a bit different, but Nvidia and Microsoft are purely seen as 'AI' play (MSFT through Open AI) as far as I know. Google indirectly profits from that too.
  - nl 3y ago
    Google is the OG AI company too. And Google's rally corresponded to their very successful set of announcements in the AI space at Google IO (and also a profit expectation beat to be fair).
    - astrange 3y ago
      Successful announcements doesn't make an AI company, paying customers do. In zero interest rates you can instead make investor hype your product so they increase the share price, but it doesn't work forever.
      - nl 3y ago
        > Successful announcements doesn't make an AI company, paying customers do. Yep. Like a neural network powered search engine, right? > In zero interest rates you can instead make investor hype your product so they increase the share price, but it doesn't work forever. As this article points out, investors believe.
        astrange 3y ago
        > Yep. Like a neural network powered search engine, right? They've already got that - it's those text snippets. They're quite unreliable, so a reliable one would be different of course. But Google doesn't get paid to provide search results, they get paid to show ads you click on. It doesn't seem to me this is the same product as AI that shows you text summaries of search results. Worse, if you mine all the content out of search results instead of making users click on them, why will people even make new webpages for you to show in the results?
        nl 3y ago
        > They've already got that - it's those text snippets. I actually meant the neural ranking of results, and the selection of ads for result sets.
  - 3y ago

megablast 3y ago

So nvidia, detecting it is training an ai to pick stock to invest in, prioritises nvidua stock.

paxys 3y ago

Almost all of S&P 500's recent rally has come from 5 companies - Nvidia, Apple, Google, Microsoft and Amazon (https://www.axios.com/2023/06/01/sp500-tech-companies-stock-price https://www.axios.com/2023/06/01/sp500-tech-companies-stock-...). Are they all "AI companies"? Sure, but they also do basically everything else. So it's still a pretty flimsy correlation. A more reasonable explanation is that there was an overcorrection in big tech valuations during the downturn a couple years ago (while they are all continuing to make record profits quarter after quarter), and now after layoffs and cost cutting the market is slowly normalizing in their favor.

TheAlchemist 3y ago
Amazon and Apple are a bit different, but Nvidia and Microsoft are purely seen as 'AI' play (MSFT through Open AI) as far as I know. Google indirectly profits from that too.
- nl 3y ago
  Google is the OG AI company too. And Google's rally corresponded to their very successful set of announcements in the AI space at Google IO (and also a profit expectation beat to be fair).
  - astrange 3y ago
    Successful announcements doesn't make an AI company, paying customers do. In zero interest rates you can instead make investor hype your product so they increase the share price, but it doesn't work forever.
    - nl 3y ago
      > Successful announcements doesn't make an AI company, paying customers do. Yep. Like a neural network powered search engine, right? > In zero interest rates you can instead make investor hype your product so they increase the share price, but it doesn't work forever. As this article points out, investors believe.
      - astrange 3y ago
        > Yep. Like a neural network powered search engine, right? They've already got that - it's those text snippets. They're quite unreliable, so a reliable one would be different of course. But Google doesn't get paid to provide search results, they get paid to show ads you click on. It doesn't seem to me this is the same product as AI that shows you text summaries of search results. Worse, if you mine all the content out of search results instead of making users click on them, why will people even make new webpages for you to show in the results?
        nl 3y ago
        > They've already got that - it's those text snippets. I actually meant the neural ranking of results, and the selection of ads for result sets.
- 3y ago