Extract fron Sto...ead today. At the close of month, both the...

Extract fron Sto...ead today.
At the close of month, both the Nasdaq and ASX Info Tech (XIJ) index were 2% lower.
Despite the broad selloff, Nvidia shares surged to all-time highs spurred by its revenue forecast of US$16 billion for the next quarter (from US$13.5 billion in the current).Nvidia has been one of the primary beneficiaries of the wave of interest in “generative” AI, with big companies willing to bet their futures on AI.
Many believe they will have to do so with Nvidia chips if they’re not to fall behind competition.
Google (Alphabet Inc) also hit a new 52-week high in August, solidifying its remarkable stock price rebound this year.
Google surged after unveiling a series of new AI products and partnerships in the last week of August aimed at equipping its enterprise clients with the latest AI technology.
AI adoption to ‘occur in waves’ Leading megacap tech names are undoubtedly in pole position to take a market leadership role in the emerging AI sector. However, according to Cameron Gleeson of Betashares, there is still a ways to go before they can take full advantage of their position.
“Once their models are developed and deployed, they will be adopted over time and drive revenue growth,” said Gleeson. Gleeson believes the uplift in demand for hardware like Nvidia’s chips will be far quicker than more downstream applications of the technology.“
As a result, investors might expect adoption to occur in waves, rather than all at once,” he added. Australian companies have also been at pains to highlight their AI credentials during the local earnings season, but the reality is this story remains a US-centric one, at least for the moment, says Gleeson.