NVIDIA Corporation (NVDA) is facing uncertainty as tech giants’ AI scaling strategies come under scrutiny. The company, which provides graphics, computing, and networking solutions, has seen its chips being deployed at larger scales by its customers to improve their AI models.
However, concerns have grown over the past few months about NVIDIA’s progress in this area. Finance news platform Financial Times reported that if tech giants’ scaling up strategies do not work, NVIDIA could suffer significantly.
The issue is also tied to the rise of other AI chatbots like ChatGPT and Gemini, which are competing with Grok, a chatbot developed by xAI. Grok’s creator, billionaire Elon Musk, has seen his startup generate $100 million in annual revenue and plans to release a standalone app for its platform.
Additionally, Chinese firm ByteDance is suing a former intern who allegedly sabotaged its artificial intelligence large language model training infrastructure. This case has drawn attention due to its focus on AI LLM training technology.
Despite the uncertainty, NVIDIA has 193 hedge fund holders, and our research shows that by imitating top hedge fund picks, we can outperform the market with a strategy that selects 14 small-cap and large-cap stocks every quarter.
Source: https://finance.yahoo.com/news/nvidia-corporation-nvda-faces-uncertainty-140139570.html