“AI snapshot
Citadel CEO Ken Griffin believes generative AI will be transformative one day, but the hype around the technology’s near-term implications is overblown. Echoing the opinion is billionaire investor Stan Druckenmiller, who plans to own Nvidia (NVDA) for years given its AI outlook. “I do believe, unlike crypto, AI is real. It could be as transformative as the internet,” he told the Bloomberg Invest conference. Goldman Sachs also estimates that widespread AI adoption will boost companies’ productivity by 1.5 percentage points over the next 10 years.” While I completely agree with the main theme that both these very successful investors espouse regarding AI and it’s long term implications. I have to take issue with one point. Druckenmiller plans to own NVDA for years, but what needs to be put in context is, this guy changes his mind and his investment positions(as well he should, based on what a stock is doing at any given time) almost as often as I change my clothes.(At least daily) So while I agree that NVDA is a great company and on the leading edge of AI with it’s chips and related products, it is currently overbought, topped and due for a correction which has already begun, as I pointed out a couple of weeks back. At some point it will reset and be ready to go higher for the longer term.