AI’s iPhone Moment: NVIDIA Is So Frothy Right Now That It Is Making Amazon Shares Look Cheap

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This market is devoid of any pretense of being rational. Multi-decade-high interest rates do not matter. A slowdown in bank lending? Pfft. Approaching recession? Prognostications of sour grapes. And the current poster child of this unbridled euphoria is NVIDIA, which has just exceeded Amazon’s lofty valuation metrics.

There have been more than 300 mentions of “generative AI” on S&P 500 conference calls so far this year --Alphasense

The phrase barely garnered a mention before 2023@CGrantWSJ https://t.co/uHbbnHMy5D pic.twitter.com/jPD5dzWo3Z

— Gunjan Banerji (@GunjanJS) May 9, 2023

There have been over 300 mentions of “generative AI” during the S&P 500 conference calls so far this year, perfectly encapsulating the AI mania that is sweeping through the market right now. In fact, a mere mention of the word “AI” is a sure-shot recipe for inducing stock price gains.

In this environment, NVIDIA continues to lead the AI bandwagon. Investors expect NVIDIA to corner a significant chunk of the AI training market via a dedicated suite of products under the ambit of its AI Foundation Services to enable clients to create and run customized generative AI models. Powered by NVIDIA’s AI supercomputers and the DGX Cloud, the AI Foundation Services currently boasts three main products: NeMo for text-based generative AI applications, Picasso for image-based AI applications, and BioNeMo for applications related to protein structure, sequencing, and molecular docking.

Toward the start of May, NVIDIA announced that its first DGX H100 systems were now being shipped to customers all around the world. As a