Five charts to start your day

NVIDIA is now the world's largest company

Good morning. Happy Monday! And in case you missed it last week, NVIDIA is now the world's largest company. Warning! Don't blink when watching this, or you'll miss it.

So what’s happened? I would argue that the inevitable did. This was pre-ordained by markets in this current AI frenzy.

NVIDIA has overtaken tech giants Apple and Microsoft to become the world's most valuable company. While there is no denying that AI will reshape the global economic landscape, the question remains: are we getting ahead of ourselves?

Investors are pricing in a distant, AI-dominated future, where NVIDIA reigns supreme. However, those future cash flows are now relatively more expensive in what is a higher interest rate environment, and there are countless unknowns when attempting to predict so far ahead in what is just a nascent industry. During the dot-com bubble, the world was convinced that the internet would revolutionise everything. Well, it did, but not in the way we imagined. No one predicted the rise of smartphones and social media.

The dot-com bubble burst because we were making predictions based on an incomplete understanding of a new economic system that was in the making. The danger is that we might be doing the same with AI. No one ever leaves comments on this newsletter. Don’t be shy. Let me know what you think.

Source: Eeagli

Coming up:

• The fastest growing economies of the 21st century

• Are podcasts the new mass medium?

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• America leave the G7 in its dust

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