I've been following the AI craze for months now, and the discourse generally falls into two extremes. On one side, there's the unbridled optimism predicting that the AI market will reach an $8 trillion valuation within the next two to three years. There is a whole sub where some enthusiasts are even urging everyone to go all in on NVIDIA, extrapolating its past performance to predict future gains. On the other side, there's the intense pessimism, with warnings of a bubble that could burst at any moment, driven more by paranoia than by solid data.
I've been hearing these warnings since NVIDIA was at $640 (or $64 post-split), yet the stock has only continued to grow. I invested $200,000 and saw a 90% gain. Currently, I don't have significant stakes in NVIDIA directly, except through ETFs. While I believe NVIDIA might be overvalued based on current numbers, I think its future potential is appropriately priced in.
NVIDIA and other AI stocks are likely to experience accelerated growth over the next few years, though perhaps not at the same rapid pace we've seen recently. The most extreme optimistic and pessimistic predictions about AI may not materialize, but AI is undoubtedly the current big thing. Right now, AI's growth is highly concentrated in big tech, but it will gradually decentralize and spread to small businesses and everyday applications.
Of course, there will be corrections along the way, and some of these may be significant. The potential for growth remains substantial, but like any market, AI is subject to risks such as major world events, pandemics, or wars. However, these risks are inherent in the stock market, whether AI is involved or not.
Leave a Reply