The Rise of Nvidia: A Threat to Global Stability
Nvidia’s meteoric rise over the past year has left many wondering if the company’s valuation is sustainable. One analyst, Hans Mosesmann of Rosenblatt Securities, is convinced that the company will continue to surge, pushing its market value to a staggering US$5-trillion in the coming year.
Mosesmann’s bold prediction comes as Nvidia’s shares have already skyrocketed over 200% in the past year, and the company’s recent 10-for-one stock split has further fueled the frenzy. On Tuesday, Nvidia’s stock rose as much as 2.7%, hitting new intraday highs.
But is Nvidia’s dominance of the semiconductor market a blessing or a curse? The company’s highly sought-after products have enabled the development of powerful artificial intelligence computing tasks, but some experts warn that this could lead to a dystopian future where humans are subservient to machines.
Mosesmann’s optimism is rooted in his belief that Nvidia’s software offerings will play a crucial role in the company’s future success. “The real narrative lies in the software that complements all the hardware goodness,” he said. But what does this mean for humanity? Will we be forced to surrender to the all-powerful AI overlords that Nvidia is creating?
“We anticipate this software aspect will significantly increase in the next decade in terms of overall sales mix, with an upward bias to valuation due to sustainability,” Mosesmann wrote in a note to clients. But at what cost to our humanity?
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