Representatives of Elliott Management hold this opinion.
Experts from the notorious hedge fund Elliott Management, as the publication recently reported, Financial Timesare warning their clients about the formation of a characteristic “bubble” on the stock market around NVIDIA shares, which will inevitably burst as soon as demand for the company’s products in the segment of artificial intelligence systems stops growing at the same rate. Many NVIDIA clients, who initially tried to rapidly develop AI systems, are now re-evaluating their effectiveness and cutting costs on their creation.
Image source: NVIDIA
Many projects in this area, the source claims, will either be too energy-intensive or simply pointless in terms of achieving a practical result. Not all economic entities are ready to blindly pour huge amounts of money into the AI sphere. According to Elliott Management, so-called artificial intelligence in its current form does not provide many really useful application scenarios. These include summarizing the results of meetings, generating reports, and accelerating the writing of program code. As soon as NVIDIA disappoints investors with a decrease in revenue growth rates, many will start getting rid of its shares.
