AI-Summary – News For Tomorrow
The AI boom is fueling unexpected growth in established tech companies that provide essential infrastructure, such as semiconductors and networking equipment. While giants like Nvidia and Taiwan Semiconductor are thriving, even legacy firms like Oracle are experiencing renewed interest and soaring valuations thanks to the demand for cloud computing. Some experts view this as a healthy sign of broad benefit from the AI revolution, while others warn that it may signify an unsustainable bubble, especially for cyclical businesses. They advise investors to be cautious and consider taking profits, noting the historical pattern of peaks and troughs in the tech sector.
News summary provided by Gemini AI.
(Bloomberg) — After years of soaring on hopes for a high-tech artificial-intelligence future, the stock market’s latest hot corner is an old fashioned part of the technology industry.
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For bulls, the wild rally in a bunch of typically quiet companies that were founded before Mark Zuckerberg and Sam Altman were even born, demonstrates how unrelenting demand for AI computing gear is benefiting a broad range of businesses. To bears, however, it’s the latest sign that the stock market has been swallowed by a bubble that’s destined to pop.
Nearly three years after the debut of ChatGPT sparked a craze for all things AI, investments in infrastructure to support the technology continue to pour in. Big Tech companies including Microsoft Corp. (MSFT) and Alphabet Inc. (GOOG, GOOGL) are spending tens of billions of dollars a year on things like semiconductors, networking equipment and electricity to power data centers used to train large language models and run AI workloads.
This spending has fueled the rise of chipmakers like Nvidia Corp. (NVDA) and Taiwan Semiconductor Manufacturing Co. (TSM), whose market values are now in the trillions of dollars, and captured the attention of investors around the world.
