Microsoft and Nvidia have successfully leapfrogged Apple, thanks to their strategic investments in artificial intelligence (AI). Last month, AI chip giant Nvidia briefly became the world’s richest company, surpassing Microsoft, which had itself overtaken Apple. However, a fall in Nvidia’s share price has since placed it back in second place, with a combined value of $3tn, compared to Microsoft’s $3.4tn.
Both Microsoft and Nvidia owe their success to their foresight and investment in AI. Microsoft began investing in OpenAI, the creator of the popular AI chatbot ChatGPT, back in 2019. Meanwhile, Nvidia’s CEO, Jensen Huang, steered his company towards AI chip development long before generative AI became a phenomenon. These long-term bets on the AI boom have paid off, leaving Apple trailing behind.
However, the AI boom has also led to inflated valuations for tech companies, and any missteps could cause significant fluctuations in share prices. Over half of the stocks in Citigroup’s “AI winners basket” have fallen in value in 2024. This has led to warnings of potential disappointment, similar to the dot.com bubble.
Despite these warnings, the excitement around AI is palpable. The recent London Tech Week might as well have been called London AI Week, with AI being the focus of every stand and speech. Many believe that the AI revolution is reshaping the tech sector, and are eager to dive back in.
However, the question remains: how long will this AI boom last? Only time will tell.
Read more: www.bbc.com