⚡️ The $600 Billion Prediction

PLUS: Goldman Sachs makes a bold claim

September 06, 2023

Good morning. A bold call from Goldman Sachs should have you watching your AI investments closely as we dig deep into whether AI stocks are too high or on the rise.

Today's Highlights:

  • Goldman Sachs on AI Stocks

  • Zoom’s AI rebrand

  • Nvidia’s $600 billion prediction

DEEP DIVE

Are The AI Stocks Too High?

Fear a bubble in the AI stocks? Goldman Sachs Group Inc doesn’t, suggesting these early winners have solid fundamentals, and their high valuations are not excessive.

“We believe we are still in the relatively early stages of a new technology cycle that is likely to lead to further outperformance.”

- Goldman Strategists

The AI rally leaders are trading at significantly lower levels than past tech bubbles, says Goldman, and not to mention, the companies are already profitable and generating cash.

The stock prices of the tech sector's dazzling poster boy, Nvidia, have soared 232% this year. AI, the 'new growth thing' for the stock market, is expected to boost long-term earnings per share for a line of companies.

But...there's a caveat.

Are we only looking at the winners here? Goldman acknowledges the challenge of valuing the scale of benefits from AI and identifying the winners and losers.

Despite Goldman's sunny perspective, Bank of America Corp. strategists fear that AI might not save tech stocks from higher-for-longer interest rates, and Morgan Stanley signals that the bubble is hitting its peak.

Are we peering at the emerging AI stock bubble, or is it the start of an exhilarating ride up the technology wave?

PUNCHLINES

AI Checkup: The healthcare industry to devote 10.5% of spending on artificial intelligence in 2023.

Baidu's Army: Baidu unveils a range of new AI-driven applications after the success of Ernie, its popular chatbot.

Supercharged Trading: The University of Oxford’s simulator JAX-LOB could revolutionize AI training in finance, running simulations at 7x speed with GPUs.

The Dark Side: All 50 US States urge Congress to address AI-generated CSAM.

Red Card for Referees? AI might replace human referees in football very soon.

TLDR

Nvidia VP predicts $600 billion AI market: Nvidia exec Manuvir Das suggests the total addressable market for AI will be worth $600 billion, with potential growth in chips and systems, generative AI software, and omniverse enterprise software. According to Das, this growth is tied to what Nvidia calls 'accelerated computing', signaling Nvidia's confident position in the booming AI space.

Shaping the Future of AI: Top AI companies are proactively engaging policymakers for the regulation of AI technology. They are entering into joint agreements with the White House, participating in multi-stakeholder forums, and offering technology briefings, indicating serious consideration of AI's potential risks and opportunities.

Microsoft's AI backpack goes public: Microsoft's AI-endowed smart backpack is now approved for public feedback. Equipped with capabilities to identify objects, perform tasks, interact with devices, and access cloud-based information, it functions as a digital assistant.

Zoom unveils new AI features and rebrands with AI Companion: Zoom is rebranding and enhancing its virtual interaction features with AI Companion, which will include an advanced chatbot. The bot will collect data from multiple resources in the Zoom ecosystem, providing real-time feedback and acting as a personal assistant. Though available to all customers, paying members will have exclusive access.

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That’s all for today—if you have any questions or something interesting to share, please feel free to reply to this email. We’d love to hear from you!

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