NVIDIA CEO Jensen Huang seems to be everywhere. Yesterday, NVIDIA announced a series of different AI deals.
NVIDIA now has the largest market capitalization at $4.9 trillion. Its stock is at an all-time high. It may be the most important U.S. company to the future of the AI sector.
And it appears to be just getting going.
Are we in an AI bubble?
Of course, it’s facile for AI doomers to say all of this is a financial bubble like the dotcom bubble.
Huang responds to that criticism below:
I might add that the dotcom bubble burst, wiping out many failed startups and investments, but ecommerce didn’t go away. Instead, ecommerce became essential to modern consumption and the Information Economy. And successful startups like Amazon forced traditional businesses like Walmart to offer their own ecommerce platforms.
Technological bubbles often result in transformative changes to modern society, from the bicycle to the railroad to the Internet and now to AI. I recommend the book Boom and Bust by William Quinn and John Turner, which discusses this key insight.
And what’s different about the AI investment today from the dotcom bubble is that it’s being driven by large market cap Big Tech companies like NVIDIA, Microsoft, Meta, Oracle, and Apple, along with some notable startups like OpenAI and Anthropic. If there is an AI bubble