History Says You'll Regret Buying Nvidia Stock
There's a shortage of high-powered chips capable of training and running advanced artificial intelligence (AI) models. Mega-tech companies are battling each other for AI supremacy, scooping up boatloads of Nvidia's (NASDAQ: NVDA) data center GPUs along the way, and AI start-ups with rocketing valuations are multiplying.
There's little question that AI is a revolutionary technology. There's also little question, at least in my mind, that AI is fueling a classic bubble. Start-ups founded less than a year ago, like Mistral AI, are already worth billions. Some publicly traded companies, notably server maker Super Micro Computer, have seen their valuations skyrocket to levels that seem illogical. Caution is increasingly being thrown to the wind.
Nvidia and its GPUs are at the center of it all. Not only are the company's GPUs well suited for the calculations necessary for training and running AI models, but its proprietary CUDA platform has become the de facto standard for accelerated computing over the past 16 years. With companies scrambling to win the AI race, Nvidia's GPUs are the path of least resistance.
Source Fool.com
