Sina Technology News Beijing time on the morning of May 30th, it is reported that Jeremy Siegel, a professor at Wharton Business School in the United States and a famous economist, is optimistic about the technology boom driven by artificial intelligence, despite fears that it may trigger a bubble.
Driven by demand for artificial intelligence chat robots and high-performance graphics processing units, which are used to train chat robots on supercomputers, artificial intelligence chips have set off a craze, with investors pouring into some stocks. this has sparked some fears of a bubble.
"it's not a bubble yet," says Siegel, a professor of finance at the Wharton School of Business at the University of Pennsylvania. He points out that he has been asked whether the current situation will repeat the dotcom bubble of the late 1990s.
David Rosenberg, an economist known for his opposing views, predicted that the current AI boom could collapse like Internet stocks in the late 1990s. When the Internet becomes popular on a large scale, a large amount of available venture capital flows into Internet-based companies, especially those startups with no track record of success, which dries up capital and leads to the bursting of the Internet bubble.
"first of all, people are excited about artificial intelligence, and Nvidia's blowout earnings confirm that excitement. It's a double push, "Siegel said.
On Thursday, Nvidia's shares rose 24 per cent after it reported better-than-expected revenue and profits for the most recent quarter. The company's share price hit an all-time high amid a surge in demand for Nvidia chips used in artificial intelligence. As a result, the chipmaker has a market capitalization of nearly $1 trillion.
Huang Renxun, Nvidia's chief executive, said on an earnings call that there was a "surge in demand" for the company's data center products. Nvidia shares are up 166% since the start of the year.
"in the long run, I think Nvidia's share price may be slightly overvalued. But in the short term, we know that momentum can make stocks much higher than their basic value, and no one can predict how high they will go, "Siegel said.
On Sunday, Nvidia announced a new artificial intelligence supercomputer with large memory, which aims to develop the next generation of giant models for generative artificial intelligence language applications. The supercomputer powered by the Nvidia GH200 Grace Hopper superchip is expected to provide nearly 500 times more memory than the previous generation of Nvidia DGX A100, which was launched in 2020.
"generative artificial intelligence, large language models and recommendation systems are the digital engines of the modern economy," Huang said. The DGX GH200 artificial intelligence supercomputer integrates Nvidia's most advanced accelerated computing and network technologies to expand the cutting edge of artificial intelligence. "
Siegel said AI-related stocks had boosted the S & P 500 and had the potential to be a "beneficiary of the banking crisis".
"We all know that the top eight or nine companies in the S & P 500 accounted for all the gains in the index. This year, the share prices of 490 other companies are basically flat or falling. Yes, NASDAQ was oversold in 2022, and it did bounce back, but I think artificial intelligence drove those big tech stocks up, "Siegel said."
"remember, any type of large-cap stocks, whether they are technology stocks or not, do not have to worry about credit conditions. Indeed, they must worry about interest rates. Credit conditions will affect SMEs. "
S & P could actually be the winner of the banking crisis. "