Market Celebrates Artificial Intelligence (Video)

After attending the Richmond Fed conference as I mentioned in my previous article, I am interested in artificial intelligence (AI) because of its amazing momentum yesterday and the trend continuing today. I’m trying to pick out some lessons to do.i keep falling to the floor Nvidia Emotions (NVDA) valuations skyrocketed, Nasdaq. As a disclaimer, I don’t usually write in depth on this subject, so please excuse any omissions. But hear for relevance.

Link to Video Backgrounder

While trying to understand the AI ​​landscape, Bloomberg’s newsletter abstract puts it nicely:

Citigroup strategists have overweight tech stocks on the back of artificial intelligence. They upgraded U.S. stocks overall to neutral on expectations of an end to AI and Fed rate hikes and resilient U.S. economic growth. with China and Europe.

AI bets have been the driving force behind U.S. equities’ high exposure to tech mega-cap stocks.

The Nasdaq 100 Index is set to be one of the world’s best performers, up 27% and off to its best start since 1998.

The strategists also cut European stocks to underweight and Chinese stocks to neutral.

The impact of AI and Large Language Models (LLMs) like ChatGPT is far-reaching. One is that “cognitive workers” could be 10, 20, or 50% more innovative and productive. According to Anton Korinek, an expert who spoke at the conference, there are implications for monetary policy, inflation and the natural rate of interest. This is considered a positive supply shock. LLM is the leading category in this field.

Basically, this is exactly the news the tech industry has been waiting for, following a 30% drop in the valuations of some companies.it’s creative destruction Outstanding, is only the creative part, that is, new beginnings, and there are also some endings. In the economics literature, we sometimes hear stories of slowing productivity growth. This is a positive trend when the trend could reverse and so many forces are inflationary, which is explained (here). The benefits of AI in the energy sector are also a top priority. Many applications can already be imagined.

Many tech companies have benefited from the attention. Few were left behind. Yesterday, the re-industrial trend will also get a tailwind from the development of AI, as explained in the article “Innovation Economy: Tectonics and Use Cases?” Supply chains, which are being restructured around the world, are similarly affected in many ways.

See some thoughts on the next generation AI era.