{"id":15801,"date":"2024-08-02T18:06:10","date_gmt":"2024-08-02T15:06:10","guid":{"rendered":"https:\/\/forklog.com\/en\/elliott-management-criticizes-nvidias-ai-valuation-as-overinflated\/"},"modified":"2024-08-02T18:06:10","modified_gmt":"2024-08-02T15:06:10","slug":"elliott-management-criticizes-nvidias-ai-valuation-as-overinflated","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/elliott-management-criticizes-nvidias-ai-valuation-as-overinflated\/","title":{"rendered":"Elliott Management Criticizes Nvidia’s AI Valuation as Overinflated"},"content":{"rendered":"

Nvidia is “in a bubble,” and the AI technology driving the company’s stock price is “overvalued,” according to hedge fund Elliott Management in a letter to clients, reports FT<\/a>. <\/p>\n

The firm, which manages assets worth approximately $70 billion, expressed “skepticism” about large tech companies continuing to purchase Nvidia’s graphics processors in significant volumes. <\/p>\n

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“Artificial intelligence is overvalued, and many of its applications are not yet ready for use,” the company asserts in the letter reviewed by FT. <\/p>\n<\/blockquote>\n

The letter also states that most of the proposed AI use cases “will never be economically viable, will not function correctly, will consume too much energy, and will prove unreliable.” <\/p>\n

Elliott Management noted that AI has failed to deliver the “promised massive productivity boost.” <\/p>\n

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“It is practically impossible to use for real-world purposes, except for summarizing meetings, generating reports, and programming,” the company claims. <\/p>\n<\/blockquote>\n

According to the firm, artificial intelligence is software that has yet to deliver “value commensurate with the hype.” <\/p>\n

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The bubble could “burst” when Nvidia reports poor performance, the fund believes.<\/p>\n<\/blockquote>\n

Nvidia’s shares have shown significant growth over the past couple of years amid the AI boom. In June, the company reached a market capitalization of $3.34 trillion, becoming the most valuable in the world for the first time. <\/p>\n

Earlier, the firm introduced a new chip architecture for training artificial intelligence models called Rubin.<\/p>\n

In April, Nvidia acquired<\/a> the Israeli startup Run:ai, which assists developers and operations teams in managing and optimizing AI infrastructure.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nvidia is “in a bubble,” and the AI technology driving the company’s stock price is “overvalued,” according to hedge fund Elliott Management in a letter to clients, reports FT. The firm, which manages assets worth approximately $70 billion, expressed “skepticism” about large tech companies continuing to purchase Nvidia’s graphics processors in significant volumes. “Artificial intelligence […]<\/p>\n","protected":false},"author":1,"featured_media":15800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[438,1294],"class_list":["post-15801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-artificial-intelligence","tag-nvidia"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=15801"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/15801\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/15800"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=15801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=15801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=15801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}