Between the Metaverse Mirage and AI’s Authentic Appetite
We’ve been through this song and dance before, haven’t we? The brilliant spectacle of cutting-edge tech promising to revolutionize our lives. Remember the metaverse hype of 2021? Yes, the same metaverse that made Nvidia the herald of tomorrow’s tech market. Fast forward to today, and you’ll find Nvidia still shining, not as a metaverse mascot but as the vanguard of AI’s assault on our economy.
Relevance: Metaverse or AI?
Tony DeSpirito, BlackRock’s CIO for Global Fundamental Equities, raised a worthy point at BlackRock’s 2023 Midyear Outlook Media Roundtable. He proposed a salient difference between the past buzz of the metaverse and the present fervor for AI: “The demand is really real.” Quite an insight there, Tony. The metaverse’s euphoria had an ethereal quality to it; the sales, not so much. But AI’s orders? The earnings growth? It’s more than just Silicon Valley whispers; it’s Wall Street echoing with hard cash.
Nvidia may have initiated this AI march by attributing its revenue boost to generative AI, but BlackRock’s looking at the bigger picture. It’s not just Nvidia, and it’s not just about semiconductors. AI is a ‘mega force,’ as BlackRock’s folks like to label it. They see it as an equal player alongside geopolitical fragmentation, the aging populations challenge, and the desperate sprint towards a low-carbon transition.
The Unrecognized Edge: Data for AI
According to BlackRock’s investment team, the significance of data in this AI revolution is hugely undervalued. It’s the companies sitting on heaps of proprietary data that hold the ace. Their large datasets become the playground for creating innovative models using new AI tools. A gold mine, you ask? Oh yes, only this time, it’s not shiny nuggets but reams of data.
The Investment Conundrum
When quizzed by Tker’s Sam Ro about the soaring stock prices of top AI companies, BlackRock’s investment team offered a compelling counterpoint. It’s not about joining the AI bandwagon now. It’s about staying put, being nimble. BlackRock Global Chief Investment Strategist Wei Li iterated their standpoint: The semiconductor chips’ demand, the surge in sales and revenues, they’re as real as it gets.
So there you have it, it’s no longer about chasing the next big thing. It’s about understanding and recognizing where the real value lies. Welcome to the era of AI.
