TSLA
Tesla
-- 410.440 NVDA
NVIDIA
-- 144.470 CRNC
Cerence
-- 19.330 QSI
Quantum-Si
-- 4.290 MSTR
MicroStrategy
-- 339.660 
Summary of 2024
The theme that has been consistent throughout the year, just like rate cuts, is AI. But to be honest, this year's AI seems more like brewing and settling. Overall, there hasn't been any groundbreaking model like ChatGPT or any disruptive applications. Instead, it seems that there are technological bottlenecks. At least up to now, OpenAI's model claiming to be GPT-5 has been continuously delayed for release.
This year's AI investments can be roughly divided into three stages, summarized as follows: NVIDIA's solo at the beginning of the year, doubts about AI in the middle of the year, and the emerging role of AI applications at the end of the year.
At the beginning of this year, NVIDIA once again exceeded Wall Street's expectations, showing a strong upward trend. First, in January at the Consumer Electronics Show CES in the USA, they showcased multiple new products, exciting investors. Then in February, facing concerns from Wall Street, Huang Renxun provided a clear response, indicating that demand will continue into 2025 and beyond. The financial reports of major tech companies also showed continued investments in data centers, validating NVIDIA's statement of supply unable to meet demand. As a result, in the first three months of this year, NVIDIA has led the continuous rise of the chip and AI sectors, thus supporting the overall market and allowing US stocks to continue rising amidst concerns about inflation.
At this time, it can also be explained as funds clustering in large tech companies. With the exacerbation of inflation and the possibility of the Fed raising interest rates, investors will prioritize stocks with certainty and strong defensiveness, with large tech undoubtedly being the best choice.
As for the peak from the end of April to June, it can be seen as the release of worries, driven by Blackwell's high expectations and NVIDIA's continued strong demand. In March, NVIDIA announced the new Blackwell chip, which sparked optimism in the market towards NVIDIA. By the end of May, NVIDIA once again released its earnings report, confirming demand once again. Huang Renxun also emphasized the current development of AI across various industries, providing Wall Street with reassurance. In fact, in the first half of the year, Wall Street was still uncertain about the reliability of AI investments, thus always being concerned about NVIDIA's future demand. This led to every time Huang Renxun mentioned good demand, it could trigger a reaction in the stock price.
However, in the summer of this year, doubts about AI suddenly surfaced, perhaps due to investors eager to see returns. At that time, Goldman Sachs, The Economist, and The Information, among other media outlets, successively questioned AI. The Economist's article even bluntly stated that AI has produced almost no economic benefits. The article indicated that this year, Microsoft, Apple, Google, Amazon, and Meta are expected to invest 400 billion in AI. Investors also raised the market value of these companies by 2 trillion last year. Yet, even with many analysts believing that Microsoft will only generate an additional $10 billion in revenue from generative AI this year, which is clearly far from enough. Data from the US Census Bureau also revealed that AI is not as popular as imagined. In a two-week survey, only 5% of companies used AI technology, far fewer than what was reported by Microsoft and Tableken. This skepticism also caused AI tech stocks to plateau overall during the summer of this year.
Finally, at the end of the year, AI applications began to emerge prominently. Walmart used AI to organize over 80 billion data points to create a new product catalog, and to enhance user experience. Taiwan Semiconductor used AI to improve manufacturing efficiency, saving hundreds of millions of dollars. In the tech sector, stocks like Palantir and AppLovin saw significant increases, both being typical AI application stocks. However, it is evident that Wall Street no longer questions the reliability of AI investments, but instead rewards companies that benefit from AI applications. The certainty of AI investments is becoming increasingly prominent.
#Smart investors #Fixed income #Passive income
#Compound interest is the eighth wonder of the world
#Investment philosophy #The value of patient waiting
#Brother Chuan #Investment strategy #Slow and steady wins the race
#Hold stocks for the long term
#US stocks #Personal finance #Investment
#Investment #StockInvestment #LongTermInvestment
#Investing #EarlyRetirement #FinancialFreedom #RetirementInvestment #PassiveIncome
#TenfoldInTenYears #SmartInvestmentClub
#SIC #smartinvestmentclub
This year's AI investments can be roughly divided into three stages, summarized as follows: NVIDIA's solo at the beginning of the year, doubts about AI in the middle of the year, and the emerging role of AI applications at the end of the year.
At the beginning of this year, NVIDIA once again exceeded Wall Street's expectations, showing a strong upward trend. First, in January at the Consumer Electronics Show CES in the USA, they showcased multiple new products, exciting investors. Then in February, facing concerns from Wall Street, Huang Renxun provided a clear response, indicating that demand will continue into 2025 and beyond. The financial reports of major tech companies also showed continued investments in data centers, validating NVIDIA's statement of supply unable to meet demand. As a result, in the first three months of this year, NVIDIA has led the continuous rise of the chip and AI sectors, thus supporting the overall market and allowing US stocks to continue rising amidst concerns about inflation.
At this time, it can also be explained as funds clustering in large tech companies. With the exacerbation of inflation and the possibility of the Fed raising interest rates, investors will prioritize stocks with certainty and strong defensiveness, with large tech undoubtedly being the best choice.
As for the peak from the end of April to June, it can be seen as the release of worries, driven by Blackwell's high expectations and NVIDIA's continued strong demand. In March, NVIDIA announced the new Blackwell chip, which sparked optimism in the market towards NVIDIA. By the end of May, NVIDIA once again released its earnings report, confirming demand once again. Huang Renxun also emphasized the current development of AI across various industries, providing Wall Street with reassurance. In fact, in the first half of the year, Wall Street was still uncertain about the reliability of AI investments, thus always being concerned about NVIDIA's future demand. This led to every time Huang Renxun mentioned good demand, it could trigger a reaction in the stock price.
However, in the summer of this year, doubts about AI suddenly surfaced, perhaps due to investors eager to see returns. At that time, Goldman Sachs, The Economist, and The Information, among other media outlets, successively questioned AI. The Economist's article even bluntly stated that AI has produced almost no economic benefits. The article indicated that this year, Microsoft, Apple, Google, Amazon, and Meta are expected to invest 400 billion in AI. Investors also raised the market value of these companies by 2 trillion last year. Yet, even with many analysts believing that Microsoft will only generate an additional $10 billion in revenue from generative AI this year, which is clearly far from enough. Data from the US Census Bureau also revealed that AI is not as popular as imagined. In a two-week survey, only 5% of companies used AI technology, far fewer than what was reported by Microsoft and Tableken. This skepticism also caused AI tech stocks to plateau overall during the summer of this year.
Finally, at the end of the year, AI applications began to emerge prominently. Walmart used AI to organize over 80 billion data points to create a new product catalog, and to enhance user experience. Taiwan Semiconductor used AI to improve manufacturing efficiency, saving hundreds of millions of dollars. In the tech sector, stocks like Palantir and AppLovin saw significant increases, both being typical AI application stocks. However, it is evident that Wall Street no longer questions the reliability of AI investments, but instead rewards companies that benefit from AI applications. The certainty of AI investments is becoming increasingly prominent.
#Smart investors #Fixed income #Passive income
#Compound interest is the eighth wonder of the world
#Investment philosophy #The value of patient waiting
#Brother Chuan #Investment strategy #Slow and steady wins the race
#Hold stocks for the long term
#US stocks #Personal finance #Investment
#Investment #StockInvestment #LongTermInvestment
#Investing #EarlyRetirement #FinancialFreedom #RetirementInvestment #PassiveIncome
#TenfoldInTenYears #SmartInvestmentClub
#SIC #smartinvestmentclub
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