Big investor says Nvidia chipmaker will be among handful of tech groups to drive stocks higher.
Nvidia is one of a handful of companies that will sustain this year’s rebound in US stocks even as the rapid advances in artificial intelligence “creates more losers than winners”, according to one of the biggest recent buyers of shares in the US chipmaker.
Silicon Valley-based Nvidia, whose tech powers AI applications including ChatGPT, last week became the first chipmaker to hit a $1tn valuation as investors stampeded into companies that are seen as the biggest beneficiaries from developments in AI.
“In Nvidia’s context, it [AI] is going to create some winners and losers . . . more losers than winners” as it disrupts business models across industries, said Rajiv Jain, founder and chief investment officer of GQG Partners.
“The most obvious winners at this point, besides Nvidia, will be the larger tech names, whether it’s Alphabet or Meta or these kinds of names,” he added. GQG Partners bought $2.3bn of Nvidia’s shares in the first quarter and has since added to its stake.
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