News Elliott says Nvidia is in a ‘bubble’ and AI is ‘overhyped’

[The Helper]

Hedge fund tells clients many supposed applications of the technology are ‘never going to actually work’

Hedge fund Elliott Management has told investors that Nvidia is in a “bubble”, and the artificial intelligence technology driving the chipmaking giant’s share price is “overhyped”.

The Florida-based firm, which manages about $70bn in assets, said in a recent letter to clients seen by the Financial Times that the megacap technology stocks, particularly Nvidia, were in “bubble land”.

It added that it was “sceptical” that Big Tech companies would keep buying the chipmaker’s graphics processing units in such high volumes, and that AI is “overhyped with many applications not ready for prime time”.

Many of AI’s supposed uses are “never going to be cost-efficient, are never going to actually work right, will take up too much energy, or will prove to be untrustworthy”, it said.

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[Varine]

I should probably check those stocks. I think I own a few shares of Nvidia.

 

[jonas]

The thing is, whether AI is total crap or not (it is), Nvidia is still selling real chips. And they will continue to do so until the last idiot CEO understands that the energy consumption of AI is too expensive for the lack of usefulness.