I Invested In Nvidia in 2022 Because I Believe In AI – It Has More Than Tripled Till Then; But I Stopped Because I Feel The Hype.
Chips and semiconductors are the root of AI.
You hear it everywhere:
I’m creating an AI startup. It’s called books.ai, and it creates books with AI.
I’m using AI to write CVs.
I’m putting an AI chip in my brain.
Everyone’s affected by AI.
A few years ago, in March of 2022, when I was studying the market to assess which investments would be the smartest, I went with Nvidia as it was a clear AI winner. AI, whether hyped or not, is here for the long run. I knew that. Hence, I invested a small part of my portfolio there, then sold it in 2023, when it almost doubled.
Little did I know that an AI market hype was coming up that would disrupt the market.
But I know one thing from all those Warren Buffet books. When there’s hype, a downfall is imminent. This notion makes me think twice about investing in purely AI companies at this stage.
📈 Nvidia’s Recent Rise: More About the Hype Than You’d Think
Nvidia’s journey up the stock market ladder has got everyone talking. It’s easy to assume they’ve reinvented the wheel, but in reality, Nvidia has been steadily impressive for years, refining their GPUs and making strides in AI.
The real plot twist? It’s the hype around AI that’s put them under the spotlight.
Investment legends like Benjamin Graham and Warren Buffet would say that true wisdom lies in playing the long game, while the short-term market is much less predictable. Nvidia’s climb is a perfect example of how being in the buzz at the right moment can really make waves.
🌐 Reflecting on the Dot-Com Bubble Through the AI Lens
The excitement surrounding AI today has a familiar ring to it: Let’s remember the dot-com era.
Back then, the internet was the new frontier, full of promise (and investment dollars), leading to a bubble that eventually burst, leaving many out of pocket.
The technology wasn’t at fault; it was the runaway expectations that got ahead of reality.
The situation with AI today gives a similar feeling; AI is groundbreaking and here to stay, but the hype can sometimes outpace the practical applications.
The tech is solid, but the investment frenzy can lead to inflated expectations.
🤖 Making AI Work for You: No Longer Optional
The market could go up or down. Nevertheless, integrating AI into your work isn’t just a cool add-on anymore; it’s essential.
Whether you’re streamlining operations, enhancing customer experiences, or crunching big data, AI has a role to play.
It’s not about jumping on the bandwagon because it’s trendy; it’s about recognizing that AI can offer real, tangible benefits to how we work and live.
The key is to approach it thoughtfully, ensuring that AI solutions are implemented in ways that truly enhance productivity and innovation rather than just for the sake of it.