Nvidia will be the ‘best beneficiary' of AI spending, says Morgan Stanley's Joseph Moore
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Wall Street Journal
an hour ago
- Wall Street Journal
Netscape's Lessons for AI Mania
The initial public offering was filed at $14. Everyone wanted shares, so Morgan Stanley set the deal price at $28. As trading started, the stock popped to $74, ending the day at $58. Tech star Figma? The latest SPAC? No, it was 30 years ago this week, Aug. 9, 1995. The Journal's Molly Baker nailed it: 'It took General Dynamics Corp. 43 years to become a corporation worth today's $2.7 billion in the stock market. It took Netscape Communications Corp. about a minute.' Remember, Netscape was a money-losing company with only $16.6 million in sales in its previous six months. Worth $2.7 billion! That's the equivalent of Nvidia shares going up 11 cents today. We've come a long way, baby.
Yahoo
3 hours ago
- Yahoo
I think Nvidia stock is now either very expensive
Sometimes, a really interesting opportunity comes along in the stock market. Take Nvidia (NASDAQ: NVDA) as an example. Having soared 1,576% in five years and recently become the first $4trn listed company ever, I would hardly say Nvidia stock is flying under investors' radar. But its price is pretty interesting, in my view. From a long-term perspective, I am not confident that Nvidia today is reasonably priced. I think it may turn out to be either very overpriced – or selling for a song. The one big question for Nvidia That is because I reckon Nvidia's valuation down the line ultimately hinges on one key question: how big will the future market for AI-related chips be? In my view, if it is as big as today or bigger and Nvidia maintains its dominant position, the current Nvidia stock price could be a bargain. But if that total market size shrinks, I think Nvidia is badly overvalued. You will notice I am focusing mostly on market size here. That is because I reckon Nvidia has a strong chance of maintaining or growing its market share over time. Barriers to entry are high. Nvidia has a talented workforce, proprietary technology, a large installed user base, and a proven business model. That could change, especially over time. Competitors may prove to be more nimble, or outsmart Nvidia when it comes to chip design. But I think it is credible to think that Nvidia will maintain a powerful market position. Its economies of scale and pricing power already make it massively profitable. If it can grow sales volumes, its profit margins could get even fatter thanks to greater economies of scale. That could help propel the Nvidia stock price far above today's level — if it happens. Everything to play for It may not happen, of course. Sometimes a key technology comes along and sparks a sales boom, only for it to later fall in popularity or become obsolete. If all those companies paying top dollar for Nvidia chips decide they already have enough from their initial installation, or land on an alternative technological solution for their AI dreams, the market could collapse. Personally I do not expect that to happen, but it could do. The sort of spending we have seen in the past couple of years from large tech companies seems hard if not impossible to sustain over the long term in the absence of transformational business results, I reckon. There is also a risk that Nvidia could lose market share regardless of what happens to the market size. While I see its position as fairly secure for now – in the absence of curveballs like export bans – over time I have less confidence. Plenty of rivals would be thrilled if they could eat Nvidia's breakfast and the more time they have, the more likely it is that at least one of them will figure out how to do it. The risk of a demand collapse puts me off buying Nvidia stock at its current price. But I would be surprised if the price is the same five years from now. I think it is most likely to be markedly higher – or a lot lower. The post I think Nvidia stock is now either very expensive – or very cheap appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Miami Herald
3 hours ago
- Miami Herald
MIT's Light-Only AI Chip Could Supercharge Electric Vehicles
Imagine an EV that doesn't need a bulky cooling system for its brain. Imagine your car processing LiDAR data, high-res camera feeds, and driver monitoring in real time-without sipping a ton of juice from the battery. MIT's new light-only AI chip, which swaps electrons for photons, might just pull this off. This isn't a minor tweak in chip design. It's a potential industry earthquake. The chip runs on photons, meaning it processes data with light instead of electricity. Sounds like sci-fi, right? But the benefits are huge: 90 percent less power consumption, almost no heat generation, and computations that happen at, well, the speed of light. For EVs, which fight tooth and nail for every mile of range, this could be the difference between 300 miles and 350 miles on a single charge. Every modern EV has a digital nervous system that sucks energy. The AI stack - everything from lane-keeping assist to voice commands - relies on energy-hungry chips like NVIDIA's Drive platform. Even when the car's parked, these processors run diagnostics and software updates, quietly draining the battery. Swap those power-hogging silicon chips with something that barely sips energy? You free up power for the motor, heating, and air conditioning. Suddenly, EVs can be smarter and go further without strapping on a bigger, heavier battery pack. And it's not just about range. The photonic chip's speed could slash latency in autonomous driving. Maybe this is exactly what Tesla's Autopilot needs to work without killing people. Imagine your car spotting a cyclist darting across the road and responding faster than your reflexes. That's not marketing hype - that's rather some life-saving tech. Self-driving cars rely on billions of calculations per second. Traditional GPUs do the job, but they're power-hungry beasts that require liquid cooling and complex thermal management. A photonic AI chip can handle these calculations with barely any heat output, which means lighter systems, lower costs, and fewer points of failure. Tesla, Waymo, and every other company chasing autonomy would kill for this kind of efficiency. Even if photonic chips start as co-processors - handling vision or sensor fusion - they'll free up traditional CPUs and GPUs to handle the rest with more breathing room. There's always a catch. These chips are still in the lab, and automotive-grade hardware certification isn't exactly speedy. Cars need chips that can survive scorching heat, freezing temperatures, and years of vibration. Expect a timeline closer to 2027 before you see a production EV using this tech. Still, the writing's on the wall. The next wave of EV innovation won't just be about battery chemistry or charging speed. It'll be about making the brains of the car just as efficient as its brawn. This MIT breakthrough is a reminder that the EV arms race is far from over. Today, it's all about range anxiety. Tomorrow, it will be about how fast your car's AI can think without stealing electrons from the wheels. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
