With the continuous improvement of artificial intelligence technology, the stock price of nvidia, one of the world’s important chip suppliers, hit a new high recently after reporting earnings, shattering the market’s concerns that its share price is overvalued. With the crazy rise of AI stocks, people may have the privilege of witnessing the birth of the Fourth Industrial Revolution.
Before reading this article, you can click here and go over it, perhaps you will have a better understanding of people’s investment methods in different periods.
As of Feb. 26 ET, NVIDIA’s stock price reached $790.92 at the close of trading, giving it a market cap of $1.98 trillion, Became the best ai stocks to invest in. According to the data released by the International Monetary Fund IMF2 in October compiled by Forbes, NVIDIA’s current market value has exceeded the GDP of most countries in the world, including Russia, South Korea, Australia and other economic powers, and is only lower than the United States, China and other 11 countries. While the comparison between a country’s GDP and a company’s market capitalization is not strictly accurate, it is enough to show that NVDIA and other AI-related companies are becoming increasingly important in the global economy.
AI- The heart of the Fourth Industrial Revolution
In human history, the first industrial revolution, we entered the age of the steam engine; In the second industrial revolution, we entered the age of electrification, and in the third industrial revolution, we entered the age of information.
The first industrial Revolution started in 1750 and ended around 1840. As the birthplace, Britain not only achieved rapid growth in GDP, but also achieved a huge rise in the British stock market in 1825.
FTSE All Share Index
Source：Internet
The second industrial Revolution began in 1870 and lasted until 1945. As the place of the second industrial revolution, the United States ranked first in industrial output value and GDP share in 1894. The Dow Jones Index once reached 359.15 points in 1929, an increase of about 400% compared with 1921.
Source：Internet
The third Industrial Revolution, also in the United States, is generally believed to have occurred from 1950 to the early 21st century. Not only did the United States continue to lead the world in terms of GDP, but the tech-focused Nasdaq index reached 4,399 points, up nearly 1,000 percent since 1994.
Source：Internet
From a simple review, it can be seen that in the early stage and development period of each industrial revolution, the stock market rose greatly, and the economic strength of the main countries was also greatly enhanced.
Every industrial revolution is accompanied by great liberation of productivity. AI algorithm is undoubtedly the most direct means to liberate productivity based on its excellent learning ability and ability to deal with complex problems. With the official exit of OpenAI from ChatGPT in 2022, its outstanding performance has enabled practitioners in many fields to improve their work efficiency. Although there are still many shortcomings, its current amazing performance has been enough to prove to the public that it is at the heart of the fourth Industrial Revolution. AI companies at this time are undoubtedly worth investing in.
