Comment by grumple
4 months ago
> more than a fifth of the entire S&P 500 market cap is now just three companies — Nvidia, Microsoft, and Apple — two of which are basically big bets on AI.
These 3 companies have been heavyweights since long before AI. Before AI, you couldn't get Nvidia cards due to crypto, or gaming. Apple is barely investing in AI. Microsoft has been the most important enterprise tech company for my entire lifetime.
Nvidia market cap has increased about 10x since the crypto-shortage years. It wasn't small before, but there's a big difference between ~1% of the market and ~10% of the market in terms of systemic risk.
Also, as of last year about 80% of their revenues were from data center GPUs designed specifically for "AI", and that's undoubtedly continuing to grow as a share of their revenues.
You’re missing the point. Whether one buys it or not to one side, the author is saying those companies, whatever their history have pushed a significant amount of their … chips into a bet on AI.
You cannot really compare Nvidia pre AI profit and market cap. As 'far' back as 2023, Nvidia was ~$15 usd per share.
Microsoft's share price has more than doubled since 2023.