What are considered good investments?

What are considered good investments?

NVidia stocks have done staggeringly well.

If you have bought into their stocks early on (like 4 ~5 years ago) its with high probability that you’ve achieved financial freedom. Good for you, you have catched the AI wave early on

I am not a investment expert but you have to wonder, ‘why are people hyping over this company?’

This company has been around Silicon Valley for more than three decades.

It’s not like they appeared out of thin air and decided to be the hottest new thing that is driving momentum behind the AI boom.

Now, I am not one of those doomsayers who think this whole AI cycle is a bubble and bust cycle is imminent.

I view myself as a techno-optimist, and AI has tremendous potential to shape and then reshape our lives for the better.

Better, as in enhanced productivity.

Then, my focus is in ‘where the next hype cycle might be in?’ to this answer I believe its always on the devices. nVdia demand is fueled by endless insatiable need from the big cloud companies wanting to build this infrastructure for machine learning (another word for AI).

Then, with the infrastructure at hand, it should change the way people use information. The best bet will be in devices.Then, we have to ask ‘who is powering this AI boom from the edge?’ meaning we have to look into whoever is powering the on-device technology with neural engines that power these AI computations.

Companies like Qualcomm with a PE ratio of 28.6 as of today (which is more similar to the S&P 500 average PE ratio) are developing new chips that power AI computation for companies like Microsoft and many PC OEMs.

(OEM stand for Original Equipment Manufacturers. They are your Notebook of PC makers like Lenovo, Asus, HP.. etc)

My example only stretches narrowly to the PC industry and my thesis is based on the assumption that AI will be a powerful feature to existing devices.

If you want to think about new devices that are standalone AI purposed, then we could look at companies like Meta or Apple where they’ve been introducing devices with special computing capabilities to enhance the immersive experience and could potentially be purposed for AI.

The life of a techno-optimist is great. You get to ponder about endless possibilities that could enhance creativity and productivity. I might not be always be right. I am not an investment expert. But its worth dreaming and betting on a much improved life that we enjoy now.