Category: Shareverse

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Apple playing catch-up in AI boom

Apple

Apple and generative AI technology is a topic that has been generating a lot of interest and speculation lately.

According to various reports, Apple is working on developing its own large language model and chatbot, which could potentially enhance its products and services with new features and capabilities. However, some analysts and experts have also raised questions about whether Apple has missed an opportunity to be a leader in the generative AI field, as it seems to be lagging behind its competitors such as Google, Microsoft, and OpenAI.

Apple uses AI in its products but hasn’t launched a generative AI product along the lines of OpenAI’s ChatGPT or Google Bard. Instead, Apple’s AI is used for improving photos and autocorrecting text.

$1 billion per year plan

  • Apple is on track to spend $1 billion per year on developing its generative artificial intelligence products, Bloomberg reported.
  • Apple is looking to use AI to improve Siri, Messages and Apple Music.
  • The spending comes as the company plays catch-up to some competitors who have already debuted new AI products and features, such as Google, Microsoft and Amazon.
  • Apple was caught flat-footed when ChatGPT and other AI tools took the technology industry by storm.

Generative AI

Generative AI is a subfield of artificial intelligence that focuses on creating content such as text, images, videos, music, and more, based on data and algorithms. One of the most popular examples of generative AI is ChatGPT, a chatbot that can respond to questions and other prompts in a natural and human-like way.

Watercolour artwork impression – ChatGPT was released by OpenAI in 2022, and since then, it has been widely used and improved by various companies and researchers.

ChatGPT was released by OpenAI in 2022, and since then, it has been widely used and improved by various companies and researchers.

Apple slow response

Apple, on the other hand, has been relatively quiet about its generative AI efforts, until recently. In October 2023, Bloomberg reported that Apple was internally testing a ‘ChatGPT-like’ chatbot nicknamed ‘Apple GPT’, but it had not devised a clear strategy for releasing generative AI tools to the public. Apple’s CEO Tim Cook also confirmed that the company was working on generative AI for years, but it was approaching it ‘really thoughtfully and think about it deeply’ because of the potential risks and challenges.

Potential challenges Apple faces in developing and deploying generative AI

Privacy

Apple has always been more cautious than its competitors in handling user data, and it has built its reputation on being a privacy-focused company. However, generative AI requires a lot of data to train and improve its models, which could pose a dilemma for Apple. How can it balance the need for data with the respect for user privacy? How can it ensure that its generative AI does not leak or misuse personal information?

Design

Apple is known for its elegant and intuitive design philosophy, which applies to both its hardware and software products. However, generative AI is a complex and unpredictable technology, which could challenge Apple’s design principles. How can it make its generative AI features easy to use and understand for its customers? How can it avoid confusing or misleading users with its generative AI outputs?

Ethics

Apple has always been mindful of the social and ethical implications of its products, and it has often taken a stance on issues such as human rights, environmental sustainability, and diversity. However, generative AI could raise new ethical concerns, such as bias, misinformation and manipulation. But then that is a common problem for all generative AI systems.

Generative AI could raise new ethical concerns, such as bias, misinformation and manipulation.

These are some of the questions that Apple needs to answer before it can launch its generative AI products to the public. It is possible that Apple is taking its time to address these issues carefully and thoroughly, as it has done in the past with other technologies such as Face ID or Apple Pay. However, it is also possible that Apple has missed an opportunity to be a pioneer in the generative AI field, as it has done in the past with other technologies such as smart speakers or cloud computing.

While Apple is working on its generative AI projects internally, its competitors are already offering generative AI.

Google

Google has integrated its large language model LaMDA into various products and services, such as Google Assistant, Google Photos, Google Docs, Google Translate etc. LaMDA can generate natural and conversational responses to any query or prompt, as well as create images and videos based on text descriptions.

Microsoft

Microsoft has acquired OpenAI’s ChatGPT technology and made it available through its Azure cloud platform. ChatGPT can be used by developers and businesses to create chatbots, voice assistants, content generators, and more. Microsoft has also integrated ChatGPT into some of its products such as Outlook, Teams, PowerPoint, and more.

Amazon

Amazon has launched Alexa Conversations, a feature that allows Alexa users to have more natural and engaging conversations with the voice assistant. Alexa Conversations can also leverage Amazon’s vast e-commerce data to provide personalized recommendations and suggestions to users.

These are just some examples of how generative AI is being used by Apple’s competitors.

Robot chatting to human chatbot online

Apple has missed an opportunity to be a leader in the generative AI field by being too slow or too cautious in developing and deploying its own generative AI products.

However, it is highly likely that Apple is waiting for the right moment to surprise everyone with its innovative and unique generative AI features that will set it apart from its competitors.

Time will tell.

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Tesla stock down 15% week ending 22nd October 2023, its worst performance of the year

Tesla

The stock dropped more than 15% over the last few days after the company posted third-quarter earnings on Wednesday 20th October 2023. 

The earnings report showed that Tesla missed analysts’ expectations on revenue and earnings per share. Tesla also announced a recall of 475,000 vehicles in the US due to a potential battery fire risk.

Additionally, Tesla faced regulatory challenges in China, where it was banned from selling its AI chips due to national security concerns. These factors contributed to the negative sentiment around Tesla stock and increased its volatility.

Tesla stock has fallen 73% from its record high in November 2021. The stock is down 69% in 2022, more than double the decline in the Nasdaq. 

Tesla price crossed below 200 day moving average this is a bearish indicator.

Tesla price crossed below 200 day moving average this is a bearish indicator.

Among major carmakers, Ford is down 46% and General Motors has fallen 43%. Since its IPO in 2010, Tesla has only fallen in one other year, an 11% drop in 2016. Some analysts and investors are still optimistic about Tesla’s long-term prospects, citing its innovation, leadership, and loyal customer base. 

However, others are sceptical about Tesla’s valuation, profitability, and competition. Tesla’s stock performance in the coming months will depend on how it can overcome its current challenges and deliver on growth.

Don’t underestimate Elon Musk, but bear in mind other big car manufacturers are now catching and moving ahead of Tesla in the EV race.

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Tesla earnings disappoint and Chinese EV stocks fall

Tesla

Shares of Chinese electric vehicle manufacturers took a hit on Thursday 18th October 2023 after Tesla reported disappointing 3Q results on Wednesday 17th October 2023.

It was the first time Tesla, co-founded by Elon Musk, missed on both earnings and revenue since Q2 2019.

On Thursday morning, Hong Kong-listed shares of Chinese EV makers BYD and Xpeng fell approximately 2.18% and 8.76%. Li Auto slid 3.14%, while Nio and Geely dropped 8.36% and 3.97%.

Elon Musk reportedly cautioned that the Tesla Cybertruck, the electric full-size pickup truck model; would not deliver substantial positive cashflow for 12-18 months after production begins.

Musk reportedly said the company is working to bring down the prices of its cars amid high interest rates. ‘I’m worried about the high interest rate environment we’re in,’ he said, adding that it will be much harder for consumers to purchase cars if interest rates were to increase further.

Tesla shares down

Tesla shares closed 4.78% lower on Wednesday 17th October 2023. Other U.S. EV rivals Lucid and Rivian fell more than 9% on the same day. Lucid’s stock dropped a day earlier after it reported disappointing Q3 EV deliveries.

Tesla shares closed 4.78% lower on Wednesday 17th October 2023.

In the first six months of the year, BYD was the world’s top EV manufacturer, contributing 21% of global sales of EVs, according to research firm Canalys. Tesla trailed behind at second place with 15% market share while German carmaker Volkswagen held 7% market share in third place.

Price pressure

EV players are under pressure from a price war to gain market share amid intense competition.

Tesla introduced a number of price cuts over the last few months, especially in China – the world’s biggest EV market.

Rivals BYD, Nio, Li Auto and Xpeng have also joined Tesla in lowering the prices for some of their EV models.

Shares in BYD, (Build Your Dreams), jumped this week after it said it expected third-quarter profits to more than double compared with last year.

BYD is now ahead of Tesla in quarterly production – and second to the U.S. car maker in global sales.

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Nvidia stock falls after restrictions placed on AI chip exports from U.S.

AI microchip

The U.S. reportedly announced new restrictions on exports of advanced chips to China, including two made-for-China chips from Nvidia.

U.S. chip stocks fell as the curbs also hit Advanced Micro Devices and Intel.

Loopholes

The curbs are aimed at closing loopholes that became apparent after the U.S. announced export curbs on microchips in October 2022. The restrictions are designed to prevent China’s military from importing advanced semiconductors or equipment.

Nvidia has said in a filing that the new export restrictions will block sales of two high-end artificial intelligence chips it created for the Chinese market – A800 and H800. It said that one of its gaming chips will also be blocked.

Nvidia Corp one month chart – closed at 439.38 17th October 2023

Although the curbs also affect other chip makers, analysts believe Nvidia will be hit the hardest because China accounts for up to 25% of its revenues from data centre chip sales. Nvidia’s shares, which are considered a star stock, fell by as much as 4.7% in the wake of the announcement.

Semiconductor Industry Association

The Semiconductor Industry Association, which represents 99% of the U.S. semiconductor industry by revenue, said in a statement that the new measures are ‘overly broad‘ and ‘risk harming the U.S. semiconductor structure without advancing national security as they encourage overseas customers to source elsewhere’.

China reacts

A spokesperson for the Chinese embassy also said that it ‘firmly opposes‘ the new restrictions, which also target Iran and Russia and go into effect in 30 days.

Nvidia stock falls after restrictions on AI chip exports from U.S. to China

Two months ago, China retaliated by restricting exports of two materials, gallium and germanium, which are key to the semiconductor industry.

China is by far the biggest player in the global supply chain of gallium and germanium. It produces 80% of the world’s gallium and 60% of germanium.

The materials are ‘minor metals‘, meaning that they are not usually found on their own in nature, and are often the by-product of other processes. It’s not only the U.S., Japan and the Netherlands – which is home to key chip equipment maker ASML – have also imposed chip technology export restrictions on China.

Fallout

The constant ‘fall-out’ between the world’s two biggest economies has raised concerns over the rise of so-called ‘resource nationalism‘ – a practice where governments hoard critical materials to exert influence over other countries.

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Up to 2500 jobs to go at Rolls-Royce

Rolls-Royce

Rolls-Royce, the British manufacturer of aircraft engines, amongst many other products announced on Tuesday 16th October 2023, that it plans to axe up to 2,500 jobs worldwide. The company said that the decision is part of its plans for a simpler, more streamlined, and more efficient organisation.

The job cuts are expected to affect mostly non-engineering roles across its global operations, and are likely to impact UK staff. 

The restructuring is one of the most significant steps taken by the new chief executive, who took over at the start of the year. 

He has described the company as ‘a burning platform‘ and said one of its main subsidiaries had been ‘grossly mismanaged‘.

Challenge

The news comes as Rolls-Royce faces a challenging business environment due to the COVID-19 pandemic, which severely affected the aviation industry. 

The company has already cut 9,000 jobs and raised capital from shareholders during the crisis. However, its share price has recovered in the last year, thanks to a resurgence in aviation demand and the early results of its transformation plan.

Rolls-Royce share price has enjoyed a healthy recovery in 2023

The company, which makes engines for aircraft, is based in Derby. It employs 42,000 people around the world with about half based in the UK.

It employs 13,700 people in Derby, and a further 3,400 people in Bristol.

Rolls-Royce is busy

Rolls-Royce is a company that does more than just making aircraft engines. It also develops and delivers complex power and propulsion solutions for safety-critical applications in the air, sea and on land.

Civil Aerospace

Pioneering innovation for sustainable flight. Pushing the boundaries of possibility for large commercial and business aviation engines, delivering new levels of efficiency and sustainability, supported by flexible and innovative services that maximise aircraft availability.

Defence

Protecting our planet and exploring the universe. Market leaders in military air and naval power solutions, and supplier of nuclear propulsion for all UK Royal Navy submarines. They also provide maintenance, repair, overhaul, helicopter services, and customer training.

Futuristic concept projects are also under potential development such as the ‘drone’ ship.

Rolls-Royce with its concept self-driving drone ships

Power Systems

Powering sustainability in propulsion and energy. Their MTU brand products contribute to the energy transition – as emergency power supplies for safety-critical installations and as integrated propulsion systems for ships and heavy land vehicles.

Electrical

Clean, sustainable, safe and silent. Leaders in advancing all-electric and hybrid-electric power and propulsion systems, focused on the opportunities offered by the net zero transition for the Advanced Air Mobility Market and beyond. They develop complete power and propulsion systems for all-electric and hybrid-electric applications.

Nuclear power plant in development

Rolls-Royce is developing a nuclear power plant system called the Small Modular Reactor (SMR). It is a type of pressurised water reactor (PWR) that can generate up to 470 megawatts of electricity, enough to power a million homes. The SMR is designed to be factory-built, modular, scalable, and cost-competitive. It can also support various applications such as grid and industrial electricity production, hydrogen and synthetic fuel manufacturing, and desalination.

Artist’s impression: Rolls-Royce is developing a nuclear power plant system called the Small Modular Reactor (SMR).

Rolls-Royce has been a nuclear reactor plant designer since the start of the UK nuclear submarine programme in the 1950s. The company has experience in developing PWRs for the Royal Navy’s submarines, such as the PWR1 and PWR2 series. The SMR is a new generation of PWR that aims to meet the global demand for clean and reliable energy sources.

The SMR project is supported by the UK government, which has allocated £215 million for its development.

Rolls-Royce has also shortlisted six sites for a major new factory building nuclear reactors, which could create up to 6,000 jobs in the UK. 

The company expects to have its first SMR operational by the early 2030s.

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Microsoft’s new $69 billion Activision-Bizzard deal passes UK approval

Call of Duty

Gaming industry’s biggest ever takeover deal

Microsoft’s $69 billion revised offer to buy Call of Duty-maker Activision Blizzard has been approved by UK regulators.

The Competition and Markets Authority (CMA) said the deal addressed its concerns, after the watchdog blocked the original $69bn (£59bn) bid in April 2023. The green light marks the culmination of a near two-year fight to secure the gaming industry’s biggest-ever takeover.

CMA criticised Microsoft’s conduct.

After the competition watchdog blocked the takeover earlier this year, Microsoft’s president hit out at the CMA’s decision which it said was ‘bad for Britain’.

The CMA chief executive reportedly said: ‘Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA. Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn’t work. Dragging out proceedings in this way only wastes time and money’.

The CMA also said the revised deal would ‘preserve competitive prices’ in the gaming industry and provide more choice and better services.

Prior to the approval, the deal, which makes Microsoft the owner of Call of Duty, World of Warcraft, Overwatch and Candy Crush, could not be finalised globally.

Under the restructured transaction, Microsoft will not acquire cloud rights for existing Activision PC and console games, or for new games released by Activision during the next 15 years. Instead, these rights will be divested to Ubisoft Entertainment before Microsoft’s acquisition of Activision, according to the CMA.

Vice Chair and President, Brad Smith seem happy after saying it would be ‘bad for Britain.

‘We’re grateful for the CMA’s thorough review and decision today. We have now crossed the final regulatory hurdle to close this acquisition, which we believe will benefit players and the gaming industry worldwide’.

Go count the money!

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If profit growth accelerates over the next two quarters – is it wise to buy the dip now?

Stocks roller coaster

Some analysts say yes!

Buying the dip means purchasing an asset, usually a stock, when its price has dropped. The expectation is that the drop is a short-term anomaly, and the asset’s price will soon go back up. It is a strategy that some traders and investors use to take advantage of price fluctuations and profit from market rebounds. 

However, buying the dip can also be risky, as there is no guarantee that the price will recover or that the asset is not in a long-term downtrend. Therefore, it is important to do your research, use indicators, and have a risk management plan before buying the dip.

Current market situation and general ‘readout’

The S&P 500 is still ‘buy the dip’ for the next six months,’ some analysts suggest.

In some reports, it is expected that the profit cycle will be positive over the next six months and for data to improve before a consumer-spending led downturn leads to a selloff in U.S. stocks! That’s the ‘general’ readout.

Corporate profit expectations are behind much of that forecast for stocks. Analysts expect profit growth to accelerate over the next two quarters and see the S&P 500 in a range of 4,050 to 4,750. A mild recession in early or middle 2024 should lead to a higher risk premium, pushing the S&P 500 back close to 3,800. This is all conjecture.

Other analysts doubt the earnings uplift potential and anticipate stocks to fall back sooner as PE ratios sit at an already high level.

Take your pick

My view, for what it’s worth, is for stocks to climb for the time being through into the New Year and then to face pullback.

Truth is, no one knows. We can all make educated guesses.

Just watch the markets and be ready for the fall – that is coming for sure!

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Cybersecurity

Hack attack!

Cybersecurity is a very important and relevant topic in today’s world. It refers to the practice of protecting systems, networks, and programs from digital attacks that can harm individuals and organizations.

Cyberattacks will all have malicious intent, such as accessing, changing, or destroying sensitive information; extorting money from users via ransomware; or interrupting normal business processes.

Cybersecurity aims to prevent or mitigate these attacks by using various technologies, measures, and practices.

There are many types of cybersecurity, depending on the domain or layer of IT infrastructure that needs to be protected.

Critical infrastructure security

This protects the computer systems, applications, networks, data and digital assets that a society depends on for national security, economic health and public safety. For example, the power grid, the water supply, the transportation system, the health care system, etc. 

In the United States, there are some guidelines and frameworks for IT providers in this area, such as the NIST cybersecurity framework and the CISA guidance.

Network security

This prevents unauthorized access to network resources and detects and stops cyberattacks and network security breaches in progress. For example, firewalls, antivirus software, encryption, VPNs, etc. Network security also ensures that authorized users have secure access to the network resources they need, when they need them.

Application security

This protects applications from cyberattacks by ensuring that they are designed, developed, tested, and maintained with security in mind. For example, code reviews, vulnerability scanning, penetration testing, secure coding practices, etc. Application security also involves educating users about safe and responsible use of applications.

Cyberattacks will all have malicious intent, such as accessing, changing, or destroying sensitive information; extorting money from users via ransomware; or interrupting normal business processes.

There are many more types of cybersecurity, such as cloud security, endpoint security, data security, identity and access management (IAM), etc. Each type of cybersecurity has its own challenges and solutions.

Companies to watch

Cybersecurity companies such as CrowdStrike, Okta, Zscaler and Palo Alto Networks are valuable assets with businesses willing to pay good money to protect against hackers.

Zscaler

Palo Alto Networks

Crowdstrike

Okta

NOTE: Always do your own very careful research – none of these ‘suggestions’ are ‘recommendations’.

Remember: RESEARCH! RESEARCH! RESEARCH!

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Dow up 300 points Friday, 6th October 2023 as stocks reverse sharp losses

Nasdaq

Stocks rallied Friday 6th October 2023 even after the release of stronger-than-expected U.S. jobs data and an increase in Treasury yields.

The U.S. economy added 336,000 jobs in September 2023, the Labour Department said. Economists expected 170,000 jobs. 

Confused?

Stocks posted a surprise turnaround on Friday, 6th October 2023 after initially falling on a hotter-than-expected jobs report. At its session low, the Dow had fallen some 270 points, then surged by more than 400 points at in intraday trading. The Nasdaq and the S&P 500 also lost ground too only but then quickly recovered the losses.

Unclear

Traders were unclear as to the reason for the intraday reversal. Some noted it could be the softer wage number in the jobs report that made investors rethink their earlier bearish stance. Others noted the pullback in yields from the day’s highs.

Rally

The rally may just be because the market had been extremely oversold with the S&P 500 at one point in the week down more than 8% from its high earlier this year.

Yields initially surged after the report, with the 10-year Treasury rate trading near its highest level in 16 years. The benchmark rate later eased from those levels, but was still up around 6 basis points at 4.78%.

Extreme market movements maybe here for a while yet.

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Is the stock market on the verge of a big go green buy signal for a ‘mini’ rally?

Buy signal?

Inflation and interest rate correlation

The stock market is influenced by many factors, such as economic data, earnings reports, geopolitical events, investor sentiment, and technical indicators. 

Some analysts have suggested that the recent sell-off in the market may have created some oversold conditions that could lead to a relief rally or a bounce back in the near future.

Stochastics oscillation

One of the technical indicators that some traders use to identify buy and sell signals is the stochastics oscillator, which measures the momentum of price movements. The stochastics oscillator consists of two lines: the %K line and the %D line.

The %K line shows the current position of the price relative to its high and low range over a certain period of time, usually 14 days. The %D line is a moving average of the %K line, usually a three-day average. When the %K line crosses above the %D line, it is considered a bullish signal, indicating that the price may be reversing from a downtrend to an uptrend. 

When the %K line crosses below the %D line, it is considered a bearish signal, indicating that the price may be reversing from an uptrend to a downtrend.

80/20 analysis

The stochastics oscillator also has two levels: 20 and 80. When the %K line falls below 20, it means that the price is oversold, meaning that it has fallen too much and may be due for a rebound. When the %K line rises above 80, it means that the price is overbought, meaning that it has risen too much and may be due for a pullback.

Careful research before buying is paramount to successful trade

The FTSE 100 index, which tracks the performance of 100 large companies listed on the London Stock Exchange, has recently fallen below 20 on the stochastics oscillator, indicating that it may be oversold and ready for a bounce back.

No guarantee

However, this is not a guarantee, as other factors may also affect the market direction. Therefore, it is advisable to use stochastics in conjunction with other tools, such as trend lines, support and resistance levels, moving averages, and other technical indicators. 

Additionally, some traders use different settings for the stochastics oscillator, such as changing the time period or the smoothing factor, to suit their own trading style and preferences. Always though, long term investing produces far better results over time as it smooths out the ‘ups and downs’.

In summary, there is no definitive answer to whether the stock market is building up to a major buy signal again right now, as different traders will have different opinions and strategies and views. But one possible way to gauge the market sentiment and momentum is to use the stochastics oscillator, which can provide some clues about potential reversals and opportunities in the market.

Note

This indicator should not be used in isolation, but rather in combination with other tools and analysis – it is just that, a tool. Good well-established companies that have good track records over many many years are a good place to look for long term returns. But even then, do your thorough research first.

So, what next?

The interest-rate/inflation correlation is crucial, because nominal company earnings grow faster when inflation is higher. That does not mean investors should welcome inflation, since higher inflation also means that future years’ earnings must be discounted at a higher rate.

But for many behavioural reasons, investors place greater weight on the negative impact of the greater discount rate than on the higher nominal earnings-growth rate that typically accompanies higher inflation.

Inflation illusion

Economists refer to this investor error as ‘inflation illusion’. Perhaps the seminal study documenting how this error impacts the stock market was conducted by Jay Ritter of the University of Florida and Richard Warr of North Carolina State University. They found that investors systematically undervalue stocks in the presence of high inflation.

Investors will make the same error, in reverse, when inflation and interest rates start to come down. That’s why the foundation of a likely big buy signal is currently being built.

Maybe the buy signal is about to go green for a quick buying opportunity. But be careful, in this environment it can switch again very quickly.

Remember, always do your own research carefully before buying.

Read: Bull market 1982 -1999 and decline of inflation. Jay Ritter of the University of Florida and Richard Warr of North Carolina State University.

RESEARCH! RESEARCH! RESEARCH!

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Gold as a safe haven investment

Gold

Gold value has been slipping in recent months of 2023 – here are some of the reasons gold prices fluctuate.

Dynamic market

Gold is a precious metal that is often seen as a safe haven investment and a store of value, but it is also subject to the forces of supply and demand, as well as many other factors that affect its price.

The gold market is complex and dynamic, and the price of gold can change quickly and unpredictably. Therefore, it is important to do your own research and analysis before investing in gold or any other asset.

Always do your research! Remember, RESEARCH! RESEARCH! RESEARCH!

Gold price from 2005 – September 2023

The production costs of gold

The cost of mining, refining, and transporting gold can influence the supply and the price of gold. If the production costs are high, the gold miners may reduce their output or increase their selling price, which can affect the market balance and the gold price.

Money supply

The amount of money in circulation can affect the value of the currency and the inflation rate, which in turn can affect the demand and the price of gold. Generally, when the money supply increases, the currency value decreases and the inflation rate increases, which can boost the demand and the price of gold as a hedge.

Geopolitical stability

The political and economic events around the world can affect the market sentiment and the risk appetite of investors, which can influence the demand and the price of gold. Generally, when there is uncertainty, instability, or conflict, investors tend to seek safe-haven assets such as gold, which can increase the demand and the price of gold.

Jewellery and industrial demand

The demand for gold from the jewellery and industrial sectors can affect the market balance and the price of gold. Jewelry is the largest source of gold demand, especially in countries like India and China, where gold is culturally and traditionally valued. Industrial demand for gold comes from its use in various electronic and medical devices, such as smartphones, computers, and dentistry. The changes in the consumer preferences, the income levels, the technological innovations, and the environmental regulations can affect the demand and the price of gold from these sectors.

Gold price 3rd October 2023

Central bank actions

The actions of central banks around the world can affect the supply and the demand of gold, as well as the value of the currency and the interest rates, which can influence the price of gold. Central banks hold gold reserves as part of their foreign exchange assets, and they can buy or sell gold to diversify their portfolios, to manage their liquidity, or to intervene in the currency markets. Central banks can also affect the price of gold indirectly through their monetary policies, such as setting the interest rates, printing money, or buying bonds, which can affect the inflation expectations, the currency value, and the opportunity cost of holding gold.

Strength of the U.S. dollar

Gold is priced in U.S. dollars in most of the major trading exchanges around the world, so when the dollar rises against other currencies, gold becomes more expensive for foreign investors, reducing the demand for it. The U.S. dollar has been strengthening since, partly due to the Federal Reserve’s monetary tightening policy that has raised the interest rates and the attractiveness of U.S. Treasury securities.

Rise of global equities

Gold is often considered a hedge against inflation, currency devaluation, and the failure of other financial assets, but when the stock market is performing well, investors tend to shift their money from gold to equities, seeking higher returns and growth potential. The global stock market has been rallying since the bottom of the Covid-19 pandemic in March 2020, boosted by the roll-out of vaccines, the fiscal stimulus, and the economic recovery.

The Krugerrand

The Krugerrand is a South African coin, first minted on 3rd July 1967

Krugerrand gold coins are a type of bullion coin that were first minted in 1967 by the South African Mint. They are made of 22 karat gold and have a diameter of 32.77 mm and a thickness of 2.84mm. The obverse side features the portrait of Paul Kruger, the former president of the South African Republic, and the reverse side depicts a springbok, the national animal of South Africa. The name ‘krugerrand’ is a combination of ‘Kruger’ and ‘rand’, the currency of South Africa.

Krugerrand gold coins are popular among investors and collectors because they have a high gold content and are easy to trade. They are also legal tender in South Africa, although they do not have a fixed face value.

Decline of inflation expectations

Gold is also seen as a protection against the erosion of purchasing power caused by inflation, but when inflation expectations are low or falling, gold loses some of its appeal as an inflation hedge. The inflation expectations have been declining in recent months, partly due to the easing of supply chain disruptions, the moderation of energy prices, and the fading of the base effects from the previous year.

These are some of the main factors that have been weighing on the gold price lately, but there may be other reasons as well, such as the speculations, the market sentiments, and the geopolitical events that can influence the supply and demand of gold.

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Magnificent 7 tech’ stocks haven’t been this cheap since 2017

Magnificent 7 tech stocks

The Magnificent Seven tech stocks

These are the seven largest U.S. listed companies in the technology sector.

Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla and Meta Platforms. 

According to a report released Monday 2nd October 2023, these tech’ stocks have seen their valuation drop relative to the median stock in the S&P 500, making them more attractive for investors. The report says that the Magnificent 7 trade at 1.3 times their PEG ratio (price-to-earnings-to-long-term growth), versus 1.9 for the median S&P 500 stock. 

This is the cheapest valuation in over six years – time to buy yet?

The report also highlights some positive drivers for these stocks, such as their strong sales growth, their ability to beat expectations, and their resilience to rising interest rates.

However, some analysts also warn that the dominance of these stocks could pose a risk for the broader market if something bad happens to tech’.

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Zuckerberg announces chatbots with ‘personality.’ Wonder where the personality dynamic will come from? Charmed, I’m sure…

Creepy chatbot

Meta has announced a series of new chatbots to be used in its Messenger service.

Charming

The chatbots will have ‘personality’ and specialise in certain subjects, like holidays, and cooking. Let’s hope they haven’t been modelled on the company boss then.

It is the latest attempt in a chatbot ‘chat’ race between tech’ companies desperate to produce more accurate and personalised artificial intelligence. The chatbots are still a work in progress with ‘limitations’, said boss Mark Zuckerberg.

During Meta’s first in-person event since before the pandemic, Mr Zuckerberg said that it had been an ‘amazing year for AI’. The company is calling its main chatbot ‘Meta AI’ and can be used in messaging. For example, users can ask Meta AI questions in chat ‘to settle arguments’ or ask other questions.

It’s been touted as fun entertainment and not just question answering.

I wonder if these AI chatbots will be as good as the Metaverse rollout has been so far?

Zuckerberg’s ‘personality’ chatbots

Zuckerberg’s ‘personality’ chatbots are a new feature of Meta, the company formerly known as Facebook. They are artificial intelligence agents that can chat with users on Messenger, using the faces and voices of celebrities like Snoop Dogg, Kendall Jenner, and Tom Brady.

Chatbots
Chatbots with personality. God help us!

They are supposed to have different personalities and interests, such as sports, cooking, or music. Meta claims that they are for entertainment purposes only, and that they have limitations on what they can answer.

Critical

However, some critics have raised ethical and social concerns about these chatbots. They argue that they are creating “counterfeit people” that could deceive or manipulate users, especially young ones. They also question the consent and privacy of the celebrities whose identities are used by the chatbots. They warn that these chatbots could pose dangers to the authenticity and trustworthiness of online communication.

If you are curious about these chatbots, you can try them out on Messenger by searching for their names. But be aware that they are not real people, and that they may not give you accurate or reliable information. They are just products of Meta’s artificial intelligence technology, which is still a work in progress – a bit like the Metaverse.

Creepy chatbot
Chatbot with creepy personality

All this wonderful AI tech and what do we do? Play games with it!

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Cathie Wood and Ark Invest company STOCK WATCH

Cathie Wood

Tech’ investor and disruptor

Cathie Wood is an American investor and the founder, CEO and CIO of ARK Invest, an investment management firm that focuses on disruptive innovation. She is known for her bullish views on Tesla, DeepMind, and many other AI companies.

DeepMind and Tesla

Cathie Wood is a fan of DeepMind, an artificial intelligence research lab acquired by Google in 2014 and founded in 2010. She reportedly says it is ‘one of the best AI companies in the world’ and that the ‘AI revolution’ will ‘change everything’.

She also says that Tesla is the ‘biggest AI opportunity in the world’ today. She believes that Tesla has a huge advantage in data collection and innovation, and that it has just started its growth potential.

Additionally, Cathie Wood has been betting on other AI stocks, such as C3.ai, UiPath, Exact Sciences, and Upstart. She thinks these companies have strong prospects in various fields, such as cloud computing, automation, healthcare, and lending.

British-American AI DeepMind

DeepMind is a British-American artificial intelligence research lab that is a subsidiary of Google. It was founded in 2010 and acquired by Google in 2014. DeepMind is known for creating neural network models that can learn how to play video games, solve complex problems, and mimic human intelligence. Some of its famous products are AlphaGo, AlphaZero, AlphaFold, and Flamingo.

DeepMind

Mission

DeepMind’s mission is to ‘solve intelligence and use it to make the world a better place‘.  It has been involved in various fields, such as healthcare, climate change, computer systems, and board games. 

DeepMind also collaborates with Google Cloud to enhance its solutions for customers

NOTE: Always do your own research!

RESEARCH! RESEARCH! RESEARCH!

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Instacart 75% plunge in valuation

Instacart IPO

Venture firms take a hit

Sequoia Capital and Andreessen Horowitz, two of Silicon Valley’s most high-profile venture firms, are poised to take a massive hit on their investments in grocery delivery company Instacart, a deal that closed in 2021 as tech stocks were soaring.

In its latest IPO prospectus update, Instacart said it plans to sell shares at $28 – $30 a share, valuing the company at around $10 billion at the top of the range. That’s more than 75% below where Sequoia and Andreessen invested in early 2021. At that time, Instacart sold shares at $125 a pop valuing Instacart at $39 billion.

Valuation plunge

The reason for the valuation collapse is that the U.S. economy reopened after the pandemic, then inflation spiked and the Federal Reserve started raising interest rates, which were stuck near to zero throughout the Covid pandemic.

Borrowed money suddenly became expensive again, and quickly too. Tech’ companies in early stages of development, need access to research and development finance – interest rate increases restricted investment.

Instacart 75% plunge in valuation from original price of $125 per share

Then consumers started shopping again on foot, and with capital costs increasing, investors began demanding that companies find a strong path to profitability.

IPO

Instacart is trying to crack open an IPO market that’s been closed for venture-backed companies for nearly two years, so it won’t be easy. However, the ARM IPO recently may re-adjust that view.

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AI pumped technology can surpass human intelligence ‘big time’ – according to SoftBank’s CEO

Arm AI chip

Masayoshi Son says AI to surpass human intelligence and that SoftBank will ‘rule the world’. Oh dear…!

Main points in brief

  • Masayoshi Son reportedly said AI is capable of helping solve the world’s biggest problems and could potentially surpass the intelligence of humans.
  • He said he was a ‘big believer’ in AI and that Arm, a chip design company owned by Softbank, was a ‘core’ beneficiary of the AI revolution.
  • He said AI would supercharge human ability and that Softbank would ‘rule the world’ and win the latest generative-AI race thanks to its heavy investment in startups and its majority stake in Arm.
  • He also acknowledged that AI posed some threats to humanity if mishandled and that society should regulate it to protect humankind.

Masayoshi Son and SoftBank

The 66-year-old founded SoftBank, which still controls about 90% of Arm Holdings after the IPO, back in 1981 after graduating from the University of California, Berkeley. Forbes estimates his net worth at more than $24 billion, making him the world’s 69th richest person.

Son made his early reputation as an investor in Japan’s mobile phone industry, and went on to become one of the first backers of Yahoo as well as Alibaba. Son continues to serve as the chairman of Arm’s board of directors.

AI does pose some threats to humanity if mishandled, Son said, likening its potential misuse to the dangers of speeding, or drinking alcohol while driving a car. But, more positively, AI can also help solve key world problems like diseases or help mitigate or recover from natural disasters, he reportedly said.

‘AI, society should regulate to protect humankind’, Son said. ‘However, it has more merit than the demerits. So, I think I’m a believer. I’m optimistic that AI is going to solve the issues that mankind couldn’t solve in the past‘.

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Arm juggernaut of an IPO

Arm Holdings

Ultra successful IPO for arm

Investors gobbled up UK microchip designer Arm Holdings at its U.S. debut on the Nasdaq on 14th September 2023, sending its market value soaring to $60 billion (£48.3 billion).

The shares ended the day worth more than $63 each, after climbing by almost 25% from the high end start of $51 per share set by Arm.

The sale was the biggest initial public offering of the year, raising $4.87 billion for owner Softbank Group.

Despite some concerns surrounding the company’s exposure to risks in China and a potential AI slowdown – the shares soared.

British tech

A star of the British technology industry, Arm designs microchips for devices including smartphones and game consoles. It estimates that some 70% of the world’s population uses products that rely on its chips, including nearly all of the world’s smartphones. And with AI nestling in on the horizon, the future potential for Arm is massive.

Arm stock chart 14th September 2023

Arm said it expects the total market for its chip designs to be worth about $250 billion by 2025, including new growth areas such as data centres and cars.

Legacy

Many of Arm’s royalties come from products released decades ago. About half of the company’s royalty revenue of $1.68 billion in 2022, came from products released between 1990 and 2012.

Bright Future

The future looks bright for Arm but the company is trading at more than 25 times its most recent full year of revenue, and at more than 100 times profit.

And that could be where things get tricky for Arm in the not too distant future. Projections for future profits will be interesting, esecially if it’s to keep up with Nvidia for instance.

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New Arm IPO substantially over subscribed

Arm AI chip

Oversubscribed

The upcoming IPO of Arm Holdings, the British chip designer that is owned by SoftBank Group is already oversubscribed by more than 10 times. Bankers plan to stop taking orders by the afternoon of 12th Deptember 2023.

This means that there is a massive demand for the shares and the company may raise more money than expected. The IPO could end up as much as 15 times oversubscribed by Wednesday 13th September 2023, which would indicate a very high valuation for Arm.

High end valuation $55 billion

Arm filed for its IPO at $47 to $51 a share, which could value the company at $54.5 billion at the high end of the range. However, Arm is still reportedly considering raising the price range of its IPO. This could easily make Arm one of the most valuable tech companies in the world.

ARM IPO
ARM IPO over subscribed September 2023

Arm is a key part of the chip supply chain, designing semiconductors found in most of the world’s smartphones, as well as other devices and applications. 

Arm is poised to become a bigger and more profitable business, as it shifts to high-margin chips and benefits from the boom in cloud computing and artificial intelligence (AI). 

Arm’s CEO Rene Haas has been pitching investors on this pivot and the growth prospects of the company.

What a success story.

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The Magnificent Seven Tech Stocks – STOCK WATCH

The Magnificent Seven

Top tech stocks

The Magnificent Seven is a term to describe seven tech’ stocks that have been surging in 2023.

  • Meta Platforms (formerly Facebook), the social media giant that also owns Instagram, WhatsApp, and Oculus.
  • Apple, the maker of the iPhone, iPad, Mac, Apple Watch, AirPods, and other popular devices and services including cloud and Apple TV streaming service.
  • Amazon, the e-commerce leader that also operates AWS, Prime Video, Alexa, and Whole Foods.
  • Alphabet, the parent company of Google, YouTube, Gmail, Google Cloud, and Waymo.
  • Microsoft, the software company that owns Windows, Office, Azure, LinkedIn, Xbox, and Teams.
  • Nvidia, the semiconductor company that produces graphics cards, gaming devices, data center solutions, and AI platforms.
  • Tesla, the electric vehicle maker that also develops solar panels, batteries, and autonomous driving technology.

Dominant

These seven stocks are considered to be dominant in their respective fields and have strong growth prospects driven by innovation and artificial intelligence (AI).

They have outperformed the broader market and attracted many investors who are looking for exposure to the tech’ sector. Some analysts believe that these stocks will continue to lead the market in the future, while others caution that they may face regulatory challenges, competition, or valuation issues.

Approximate combined market cap of the Magnificent Seven tech stocks

The approximate combined market cap value of the Magnificent Seven as of September 2023 is approximately $11.8 trillion.

  • Apple: $2.5 trillion
  • Microsoft: $2.3 trillion
  • Alphabet: $1.9 trillion
  • Amazon: $1.7 trillion
  • Nvidia: $0.8 trillion
  • Meta Platforms: $0.9 trillion
  • Tesla: $0.7 trillion

Note that these values will change over time as the stock prices fluctuate.

A way to trade the tech sector is through funds

There are many funds that can trade tech stocks, depending on your investment objectives, risk tolerance, and preferences.

Technology mutual funds: These are funds that invest in a diversified portfolio of technology companies across different industries, such as software, hardware, internet, cloud, biotech, and more. Technology mutual funds can offer exposure to the growth potential of the tech sector, as well as reduce the volatility and risk of investing in individual stocks. 

Some examples of technology mutual funds are Fidelity Select Technology Portfolio (FSELX), Columbia Global Technology Growth Fund (CGTYX), and Schwab U.S. Large-Cap Growth Index Fund (SCHG).

Which tech fund to invest in?

Technology exchange-traded funds (ETFs): These are funds that track an index of technology stocks and trade on an exchange like a stock. Technology ETFs can offer low-cost and convenient access to the tech sector, as well as allow investors to choose from different themes, such as cybersecurity, artificial intelligence (AI), cloud computing and more. 

Some examples of technology ETFs are Invesco QQQ Trust (QQQ), Technology Select Sector SPDR Fund (XLK), and VanEck Vectors Semiconductor ETF (SMH).

Technology index funds: These are funds that replicate the performance of a specific technology index, such as the Nasdaq 100, the S&P 500 Information Technology Index, or the Morningstar U.S. Technology Index. Technology index funds can offer broad and passive exposure to the tech sector, as well as low fees and high tax efficiency.

Some examples of technology index funds are Fidelity NASDAQ Composite Index Fund (FNCMX), Vanguard Information Technology Index Fund Admiral Shares (VITAX), and iShares Morningstar U.S. Technology ETF (IYW).

NOTE: These are not recommendations. Investments may go up or down. Your money is at risk!

Always do your own research…

REASEARCH! REASEARCH! RESEARCH!

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Apple $200 billion loss in just a few days – NASDAQ falls

Apple

50 million iPhones sold in China every year

Apple sells around 50 million iPhones in China annually. A sweeping ban is what investors fear and that spells trouble for Apple.

Apple stock drops after The Wall Street Journal reported a day earlier that Chinese authorities have curbed the use of the iPhone. Apple’s flagship product will no longer be legal to use by some central government officials.

The potential crackdown threatens to dissrupt Apple’s sales as China accounts for about 20% of Apple’s total revenue. Uncertainties about the news prompted investors to retreat from Apple postions, leading to a 6% drop in Apple shares in two days. More than $200bn of market cap was wiped out.

$200 market cap drop

Apple shares fall $200 billion in just days September 2023

The iPhone commeth

Adding to the concern, Apple is just days away from its key event. On the 12th september 2023, the company is expected to officially announce the launch of its newest smartphone – the iPhone 15.

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Unit Trusts – KNOWHOW

Chart

A unit trust – a brief explanation

A unit trust is a type of investment fund that allows you to pool your money with other investors and invest in a variety of assets, such as shares, bonds, property, or cash.

A unit trust is managed by a professional fund manager who decides what to buy and sell according to the fund’s objectives and strategy. You can buy or sell units in a unit trust at any time, depending on the market price of the units. The price of each unit is calculated by dividing the total value of the fund’s assets by the number of units issued.

The more units you own, the more you benefit from the fund’s performance. A regular monthly purchase is the best way to buy as you evenly spread the cost and smooth out and the ‘up’s and ‘downs’ over time.

Some of the advantages of investing in a unit trust

  • You can access a diversified portfolio of assets with a relatively small amount of money.
  • You can benefit from the expertise and research of the fund manager who makes the investment decisions for you.
  • You can choose from a wide range of unit trusts that suit your risk appetite, investment goals, and preferences.

Some of the disadvantages of investing in a unit trust

  • The performance of the unit trust depends on the skill and judgment of the fund manager, who may not always make the best choices.
  • You have to pay fees and charges to the fund manager and other service providers, which can reduce your returns.
  • You may face market risks and volatility, which can affect the value of your units.

A unit trust is a good way to invest in the markets but beware, like any investment, markets go up and they go down! Be aware and be careful.

This is not advice or recommendation.

RESEARCH! RESEARCH! RESEARCH!

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Arm looking for up to $52 billion valuation in U.S. IPO

Arm Holdings

Chip design firm Arm on 5th September 2023 submitted an updated filing for its upcoming initial public offering on the New York Stock Exchange, setting a price range between $47 and $51. Only 9.4% of Arm’s shares will be freely traded on the NYSE.

Arm was previously listed in London and New York, before SoftBank acquired it for $32 billion in 2016.

Chip design firm Arm on Tuesday is looking to acquire as much as $4.87 billion in its upcoming initial public offering on the New York Stock Exchange, according to the new filing.

The deal could value the company at as much as $52 billion

As a British company, Arm qualifies as a foreign private issuer in the U.S. and its shares will count as American depositary shares, or ADS’s. It is reported that the company will list some 95.5 million ADS’s at a price range of between $47 and $51. At the upper end of that range it is estimated that Arm will likely raise up to $4.87 billion. At the lower end, the IPO would fetch $4.49 billion of fresh capital for Arm. It could do even better.

Institutional funds

When the company floats in New York, it will look to enjoy a very deep pool of professional institutional funds. Arm seeks to ramp up its investments in research and development, particularly as it pursues growth in the artificial intelligence (AI) space with some of its newer chips. The company recently released new chips specifically targeted at AI and machine learning use cases.

Arm AI chip
Arm seeks up to $52 billion valuation in U.S. IPO

Upper end

At the upper end of the pricing range, Arm would also touch a total valuation of $52 billion or more. Only 9.4% of Arm’s shares will be freely traded on the New York Stock Exchange, with SoftBank expected to own roughly 90.6% of the company’s outstanding shares after the completion of the IPO.

Arm’s listing is set to be the biggest technology IPO of the year. Investors are hoping that the listing could breathe new life into an IPO market that has been ‘slack’ since 2022.

250 billion chips globally

Arm says its energy-efficient processor designs and software platforms are integrated into more than 250 billion chips globally, into products ranging from sensors and smartphones to supercomputers.

The company estimates it enjoys approximately 48.9% share of the market for semiconductor design. Other players, such as Intel and AMD, have raced to catch up on designing their own chip architectures, but have struggled so far.

U.K. misses out… again

The U.K. government had originally hoped Arm would list on the London Stock Exchange, but the company instead dealt a major blow to Britain’s ambitions to become the leading global tech hub by opting for New York. The U.S. financial center has a deep institutional investor base and analysts who have a close understanding of the technology sector.

BIG interest

Chip design firm Arm said in a Tuesday filing that Apple, Google parent Alphabet, Nvidia and other technology companies are interested in buying up to $735 million in its shares as it seeks to go public on Nasdaq.

The investments might not happen, but the fact that these companies are considering them underlines the importance of Arm, whose designs are used for processors in data center servers, consumer devices and industrial products.

ARM chip
Arm chip – some 250 billion chips globally

Chip makers Intel, Samsung and TSMC are interested in investing alongside the three trillion-dollar technology companies, along with AMD and MediaTek, which make chip designs based on Arm architectures. Cadence Design Systems and Synopsys, which make electronic design automation software for processor development, have also expressed interest, according to a revised prospectus for Arm’s shares sale. This IPO could easily be the biggest of the 2023!

As part of the deal, Arm could wind up with a $52 billion market capitalization and almost $5 billion in new cash.

This is likely to be the biggest IPO of 2023

It is estimated that there will be about 19 billion devices using the Arm processor in the world by the end of 2023.

Arm target

The market share of Arm across different technology markets worldwide, which was 90% for mobile application processors, 34% for embedded computing, and 5% for data center and cloud in 2019. 

Arm has a target of increasing its market share to more than 90%, 50%, and 25% respectively by 2028.

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Adobe hunting for potential future AI software top spot – STOCK WATCH

Adobe Firefly

The creator of Photoshop and InDesign launched a generative AI tool called ‘firefly’, which has recently gained traction. It is quite possible that Adobe has one of the best AI generative tools available and it’s worth checking it out as a stock to *invest in.

Firefly enables users to edit through simple typed commands

Adobe Firefly is a generative AI-powered content creation tool from Adobe that allows you to experiment, imagine, and create an infinite range of images with simple ‘text’ prompts. 

You can use Firefly to generate images from a detailed text description, apply styles or textures to words and phrases, use a brush to remove objects or paint in new ones, generate color variations of your vector artwork, and more. 

Adobe Share Chart as at 5th september 2023

Morgan Stanley thinks Adobe can benefit from artificial intelligence-powered products even more.The bank upgraded Adobe to overweight from equal weight.

Bank of America has also upgraded Adobe to buy with a revised target price of $63000 per share.

Definitely one to watch!

*Please do your own careful research – this is not a recommendation but simply an observation. Remember RESEARCH! RESEARCH! RESEARCH!

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Robots are coming to a home near you..?

Robot AI

Think of the biggest market for a physical product you can possibly imagine – are you thinking mobile phones, cars or game devices even? Think again…?

They are all big commercial markets but in the coming decades a new product is coming and it will be so desirable that it will dwarf these giants – it will be… the ‘robot’.

Robots will be able to understand what we want, comprehend the way the world works and looks and have the skills to execute our commands in a safe and controlled manner – at home and in the workplace.

Biggest market

The labour market is the biggest market that has ever existed in the history of business – it’s the market where we want things ‘done’ – where we do things – and it’s forever evolving. It carries massive stock market and investing potential right now and for the future.

Robot AI tech
Robot AI tech – a market place to explore

Take Nvidia, Microsoft, Google, Meta, Apple and Tesla as prime examples of companies pioneering technological advancements for instance – we can already enjoy and invest in these – and there’s much more to come.

Dozens of firms around the world are working on the technology

In the UK, Dyson is investing in AI and robotics aimed at household chores.

One of the highest profile companies in the market is Tesla, Elon Musk’s electric car company. It is working on the Optimus humanoid robot, which Mr Musk intimates could be on sale to the public in a few years’ time.

Massive tecnological advancement in artificial intelligence (AI) and robotics suggest the development of humanoid robots is accelerating… and fast. It’s a race to the become the first to succeed in the biggest practical labour market ever… and it carries huge potential for everyone, including you and me.

20 years from now…? Where were Tesla and Apple 20 years ago?

Twenty years at the pace the technology is developing now is is an eternity – every week, month and year there are new developments in the AI world that have introduced fundamental changes and enhancements to our world.

Mainstream interest in AI exploded late 2022 when a powerful version of ChatGPT was made public. Its ability to generate almost unlimited useful text and images has spawned rivals and a wave of investment in AI technology.

But developing the AI that would allow a robot to complete useful tasks is a different and much more difficult task. Tesla could be the company best placed to be one of the first to achieve this goal – given its advancements in ‘self driving’ technology. But, unlike ChatGPT and its rivals, humanoid robots have to navigate the physical world and need to understand how objects in that world relate to each other.

Tasks that seem easy to humans are major feats for humanoid robots. This is a problem that engages a lot of different complex issues in an AI driven robotics system. Picking up a cup and having a drink is a major undergoing for a robot.

The market place potential is unlimited

The potential market for robots in the future depends on various factors, such as the level of technological innovation, the demand from different industries and sectors, the regulatory and ethical frameworks, and the social and economic impacts of robot adoption. But if recent developments are anything to go by – it promises to be big!

Robot
Robot AI – a massive potential future market place

Based on the some indicative web search results, the current market size for robots is estimated to be around $55 billion to $114 billion in 2023, depending on the type and scope of robots included. The projected market size for robots in 2028 or 2029 ranges from $165 billion to $260 billion, with a compound annual growth rate (CAGR) of 11.4% to 17.6%.

The professional services robots, which include medical, agricultural, and personal assistance robots, are expected to dominate the market and account for more than half of the total sales by 2030. The industrial and logistics robots, which include conventional, collaborative, and mobile robots, are also expected to grow steadily and increase their productivity and efficiency in various manufacturing and transportation applications.

However, these projections are based on assumptions – but one thing is for sure the robots are coming and the market will be massive!

I for one will be keeping a watchful eye on where to invest my hard earned cash to take advantage of this potentially high growth market in the coming years (and now).

Nvidia stock anyone?

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Nvidia’s stock at record high after Google AI deal

AI microchip

Nvidia shares rose 4.2% Tuesday 29th August 2023 to close at a record high, after the company announced a partnership with Google that could expand distribution of its artificial intelligence technology (AI).

The stock’s bountiful run continued, now up 234% in 2023, making it by far the best performer in the S&P 500. Facebook parent Meta is second in the index, up 148% so far this year.

The record close comes less than a week after the company said quarterly revenue doubled from a year earlier and gave a forecast indicating that sales this period could rise 170% on an annual basis. The day after the better-than-expected earnings report, the stock climbed to a record intraday high of $502.66 before declining later in the afternoon.

Nvidia’s business is booming because its graphics processing (GPU’s) are being gobbled up by cloud companies, government agencies and startups to train and deploy generative AI models like the technology deployed in OpenAI’s ChatGPT as fasta as Nvidia can make them.

NVIDIA stock chart

Nvidia announcment

On Tuesday 29th August 2023, Nvidia CEO Jensen Huang appeared at a Google conference to announce an AI agreement between the two companies.

Through the partnership, Google’s cloud customers will have greater access to technology powered by Nvidia’s powerful H100 GPUs.

‘Our expanded collaboration with Google Cloud will help developers accelerate their work with infrastructure, software and services that supercharge energy efficiency and reduce costs’, the Nvidia CEO reportedly said in a blog post.

Nvidia’s GPUs are also available on competing cloud platforms from Amazon and Microsoft.

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Nvidia blasts off into AI superstardom

AI rocket

Technology giant Nvidia reports its sales have hit a record after more than doubling as demand for its artificial intelligence (AI) chips take off!

It figures

The company says revenue jumped to above $13.5bn (£10.6bn) for the three months to the end of June. Nvidia also expects sales to perform very well in the current quarter and plans to buy back $25bn of its stock. The firm’s shares rose by more than 6.5% in extended trading in New York, adding to their huge gains this year. Nvidia also said it expects revenue of around $16bn for the three months to the end of September 2023.

That is substantially higher than Wall Street expected and would equate to a rise of around 170%, compared to the same time last year.

Even before 23rd August’s figures, Nvidia’s stock price had more than tripled for the year, making it the top performer in the S&P 500. It’s share price jumped to around $500 after hours, a level that would mark a record if it closes there on 24th August 2023. Its prior closing high was $474.94 on 18th July 2023.

‘A new computing era has begun’, Nvidia’s chief executive, Jensen Huang, said in a statement. ‘Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI’, he reportedly added.

Strong performance

The strong performance was driven by Nvidia’s data centre business, which includes AI chips.

The power of Nvidia’s AI microchips

Revenue for that unit came in at more $10.3bn, a rise of more than 170% from year ago, as cloud computing service providers and large consumer internet companies snapped up its next-generation processors.

This year, Nvidia’s stock market value has jumped to more than $1 trillion as its shares more than tripled in value, mking it the fifth publicly traded U.S. company to join the so-called ‘Trillion dollar club’, along with Apple, Amazon, Alphabet and Microsoft.

AI ‘mania’ helps Nvidia

Nvidia have been making micro chips for a long time and it’s only really been in the last couple of years that the market has caught on.

Nvidia was originally known for making the type of computer chips that process graphics, particularly for computer games. They have been making chips for a long time and have now become the leader in AI chip design and manufacture.

Now Nvidia’s hardware is the foundation for most AI applications, with one report suggesting it had cornered 95% of the market for machine learning.

ChatGPT which generates human-like responses to user queries within seconds was trained using 10,000 of Nvidia’s graphics processing units clustered together in a supercomputer belonging to Microsoft.

AI products are expected to dramatically change how we use computers and the role they play in our lives.