They are pumping cash into private startups working on generative AI, or systems that can conjure humanlike conversation and imagery and generate computer code. The AI app ChatGPT reached 100 million downloads in just two months, much faster than other popular apps such as TikTok and Uber. The strong forecast reflects “a steep increase in demand related to generative AI and large language models," Nvidia Chief Financial Officer Colette Kress said Wednesday on a conference call with analysts. Nvidia trades at 49 times its forward earnings projection, while Microsoft and Meta trade at 31 and 20 times, respectively. That limited supply is helping fuel the rally in blue-chip stocks, said Joseph Zappia, co-chief investment officer at LVW Advisors.

Source: Mint May 27, 2023 21:31 UTC