Be cautious of the 'illusion' of growth in the IPO of AI semiconductor companies.

October 4, 2024, 2:39 PM GMT+9 (excerpt).

With the emergence of OpenAI's chatbot GPT, American companies dealing with artificial intelligence (ai) have ignited a competition to expand market value. Particularly, major semiconductor manufacturers have received tailwinds, and Nvidia, which manufactures semiconductors essential for training AI models, has seen its market value soar nearly 600% since the introduction of GPT chatbots about two years ago.
One of the competitors trying to ride this enthusiasm is Nvidia's rival Cerebras Systems, which is showing its appeal in the market. However, this appeal may be an illusion similar to the issue faced by one of the AI technologies, Large Language Models (LLM), which can generate hallucinations, outputting content that is not factual.