This is the question of the new century 3.0, bet on artificial intelligence?
I haven’t written for a long time, the markets are monotonous, there are not many market movers, volatility is very low, Skew (volatility skew is the difference in implied volatility between OTM, ITM and ATM options) is at its highest because traders prefer to hedge against market risks.
Today I would like to address the issue of artificial intelligence also because I hear about it more and more often from too many people, someone as always asks me but on which securities would you invest?
The media and financial market experts are exploiting and riding this theme because they see business opportunities, the media to increase advertising revenue while experts to create “appeal” on some stocks compared to others.
In America at the time there was the gold rush, now there is the race of artificial intelligence, just one question: how did the gold fever end in the 1800s? How many people were screwed?
Reading that ChatGPT is the solution to our problems makes me smile, thinking that computers are “problem solving” for the human being seems exaggerated to me also because many people with the use of technology are literally losing touch with reality.
Another big bet is Nvidia which has reached a record capitalization of $1 trillion in a short time because investors are excited about the demand for chips for generative artificial intelligence (which is the basis of ChatGPT). The figures are absurd, 1000 billion capitalization, 100 million users in two months seems excessive to me and in life I have learned that these frightening progressions deflate just as quickly.
I would like to point out two problems to my readers, the first after the internet (late 90s / 2000s), artificial intelligence could be overvalued and the second problem is the scarcity of names to invest in, so many investors have diverted huge money masses on very few companies.
Will anyone remember in 2010 when IBM created the Watson system?
Look at the surge in the IBM chart to demonstrate the reaction of investors on the financial market, so the stock rose and then fell in 2011, then you can write to me privately but then it recovered, but did you know before?
I do not particularly like the investors of the day after or those who today speak of artificial intelligence as the best mega trend to follow and then in 1/2 years write that there were no assumptions because in the end there are few companies.
Since we are on the subject of technological investments, what happened to the Metaverse of Facebook? Answer for yourself…
Honestly in addition to Nvidia (in my opinion it is overrated) and Big Tech that have practically the monopoly with incredible capitalizations, where a small saver could invest his money?
A Botz Global X Robotics ETF? It’s more into robotics than pure artificial intelligence, a small company named C3.ai you know it?
I do not like speculative bubbles but when I see too much enthusiasm as with cryptocurrencies (Ftx), 3D printers, cannabis stocks and many other Spac (special purpose acquisition companies) of companies I ask myself many questions and in the end then the results tell me: you were right not to click on the Buy button.
Pay close attention to what you read, to what you find on YouTube, to those who speak continuously inflating the theme of artificial intelligence, my advice is to always ask yourself questions, what interests are behind these media campaigns and who are really the main protagonists on the market?