Does anyone in Silicon Valley know the saying, “the bigger they are, the harder they fall?” Maybe it’s only a matter of time before they do.
Technology company leaders should shudder at Nvidia’s meteoric rise as the artificial intelligence rally has propelled the chipmaker to become the world’s most valuable company. This is a company selling coveted AI chips to a handful of cloud giants that are reaping the short-term benefits of the AI hype, even as things look murkier downstream.
It’s hard to imagine how Nvidia CEO Jensen Huang will sustain such growth (even as he directs his company to sell software), and he can thank himself and his colleagues for it. Technology giants like Alphabet, Amazon.com and Microsoft have distorted expectations for generative AI’s contribution to profits. They will pay for it if they don’t temper expectations.
