Dalio Warns of AI Bubble Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- AI Bubble Warning: Ray Dalio, founder of Bridgewater Associates, warned in a Bloomberg interview that an AI bubble is forming, with companies caught between overspending and underinvesting, which could lead to poor future returns.
- Heavy Cloud Stock Holdings: Despite his warnings, Dalio heavily invested in AI-related stocks in Q1, particularly Amazon, Alphabet, and Microsoft, which are projected to spend $580 billion on AI infrastructure in 2023, indicating strong market demand.
- Growing Hardware Investments: Dalio's portfolio also includes hardware companies like Nvidia, Broadcom, and Micron, with a 20% increase in Nvidia shares, highlighting its dominance in AI infrastructure through its GPUs used for training AI models.
- Memory Market Supercycle: Micron's stake was increased by 65%, benefiting from a DRAM bottleneck that drives prices up, with expectations of locking in higher prices through long-term contracts, further strengthening its market position.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 204.870
Low
200.00
Averages
264.97
High
352.00
Current: 204.870
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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