The recent rise of the artificial intelligence trend and the incredible value gain of companies that have caught up with this trend have started to make Silicon Valley investors especially suspicious. Nvidia, which made history by achieving a value increase of 277 billion dollars in just a single day, took its place among the most valuable companies in the world.
Although there are those who claim that this increase in the valuation of AI-related companies will continue for a long time, billionaire Marc Rowan disagrees. Rowan’s investment company, Apollo Global Management, claimed in its report that these astronomical increases could not continue for a long time. Here are all the details…
Will the upward trend in the field of artificial intelligence continue?
Claiming that the top 10 companies in the S&P 500 have a balloon valuation that has never been seen in history, Apollo stated that if the exaggerated share prices drop to real levels, many investors will suffer great losses and there may be a flood of bankruptcies.
Cathie Wood, founder of another investment giant Ark Invest, also has the same view. While Wood recently sold $4.5 million worth of Nvidia shares, he also reduced his portfolio in TSMC.
Will Nvidia CEO become the richest person in the world?
While Nvidia increased its earnings, Jensen Huang, who is the CEO of the company, also gained a great fortune.
Wood said that the artificial intelligence chip pressure on Nvidia is huge and suggested that at the end of the day, it will remain under this pressure and not meet expectations. Last week, there was news that the company was having difficulty meeting the extreme increase in demand. At the end of the day, we hope that all these developments will benefit the users.
So what do you think about this issue? What do you think will be the future of artificial intelligence companies? You can easily share your answers with us in the comments section below. Your opinions are very valuable to us.