Minuk's Musings (weekly note) & the AI Race

Richard Minuk - Feb 24, 2023

The artificial intelligence race is officially on!

 

Open AI’s Chat GPT was first out of the gate with a USD10B investment from Microsoft followed by Google’s less successful launch of Bard and many other AI competitors are now gearing up.

 

Integrating artificial intelligence into our daily lives will require an enormous amount of additional computing power.

 

The pressure to deliver is on the shoulders of semi-conductor companies who will now be tasked to develop more powerful and efficient chips to enable the growth of this new and exciting (and kind of scary) technology.

 

As evidenced by recent returns, investing in semi-conductor companies can be lucrative but also should be approached with caution as their price movements can be volatile based on the many moving parts of the industry’s supply/demand cycles.

 

Company

YTD

2022

AMD Micro Devices

+19%

-55%

Taiwan Semiconductor

+18%

-37%

NVIDIA

+58%

-20%

ASML

+16%

-28%

Factset Feb 24 2023

 

Hope you have a great weekend,

 

Richard

 

Richard Minuk, CFA | Investment Advisor