Investing in Artificial Intelligence (AI)

[Garpal Gumnut]

mind you their plan is working very well in the UK ( their alleged base )

You may ask what colour were the carrots that I bought in the supermarket last Friday.

The carrots that I bought in the supermarket last Friday were carrot coloured.

gg

 

[divs4ever]

You may ask what colour were the carrots that I bought in the supermarket last Friday.

The carrots that I bought in the supermarket last Friday were carrot coloured.

gg

well the orange ones used to be carrots and the whitish ones turnips , but in this 'rainbow world ' they might be purple next week

 

[divs4ever]

i'll stick to energy suppliers coal gas , oil and copper plays for AI , and industrial sheds/data centers for the next level exposure along with telcos so the databases can update themselves

 

[mullokintyre]

It seems that one fund manager sees a bubble in AI.
From MSN

Mick

 

[mullokintyre]

Zerohedge sees another sign that perhaps the bubble in Ai may be starting to lose a little air.

Shares of server-maker Super Micro Computer, which have been among the biggest beneficiaries of the AI euphoria over the past two years as it emerged as a proxy for AI demand (and server installs), soared as much as 16% before crashing more than 10%, after the company reported Q2 revenue and profit that missed estimates, but it was the company's plunging profit margins that which outweighed the company's ecstatic sales outlook that was billions above Wall Street projections as well as the 10-1 reverse stock split announcement.

For Q2, SMCI reported revenues of $5.31 billion, which missed the average estimate of $5.32 billion; while Adjusted EPS dropped to $6.25, well short of Super Micro’s own previous forecast and the $8.25 average analyst estimate.
But what truly spooked Wall Street was the incineration in margin which collapsed 580bps YoY (and 430bps QoQ) to just 11.3%, amid a fierce price cutting war with competitors such as Dell and Hewlett Packard.



Also, the $635 million in cash burn - the 3rd straight quarter of negative cash from operations - did not help.



While the company tried to blame the collapse in margins on "customer and product mix and investments in Talent and Research & Development, Wall Street did not buy it, and in fact it sold it aggressively, sending the stock collapsing to the lowest level of the year.

mick

 

[mullokintyre]

A further datapoint on the meme that the AI bubble deflation has begun.
From Extreme Tech
Intel announced that its third gen Gaudi chip will be a third the price of its competitors from NVIDIA.
A price war in AI chips, just what the doctor ordered.
Mick