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AI is making a major impact on search (and productivity). Good for Google, Amazon, Meta, Microsoft and (of course) Nvidia

This site is updated over what I emailed earlier this morning. — Harry.

It’s been a while.  I’m still alive.

Our stocks are doing well. Hence, no reason to change, except to dump a few experiments.

I felt guilty (and stupid) that my focus is tech stocks.. and not much else.  I’ve been a cracked record.

So, in the last couple of weeks, I went looking among biotech, energy, transport, cell phone providers and industrials. My hot buttons stayed cold.

AI appeared on the scene with ChatGPT in November 2023. It was the fastest take-up of any technology, viz this chart:

But where were the investment opportunities of the ensuing 18 months?

Look at this chart of the last two years — the usual suspects compared with Nvidia.

Now you know why Nvidia is my largest holding, eclipsing the next one (META) by nearly three times in value (as of Tuesday night, May 14)

Nvidia reports in eight days. Will it disappoint? Will it blow the lights out?

I’m opting for the lights.


Wherever I’ve turned, read, researched in recent days — in whatever industry (including the ones I mentioned above), Nvidia’s name has popped up, as a partner, as a supplier, as an investor … or all three.

But NOW, not then (later)?

The BIG immediate explosion in demand for Nvidia’s stuff is in data centers. That’s where you’re seeing huge growth. Everyone and their uncle are building them NOW — if they can find a place to put them with heavy duty power. In fact, data centers’ power demands are causing a huge redesign and heavy investment in the national grid.  There’s been huge press about the national grid.

Meantime, go to Nvidia’s web site, you can read this:

The Exponential Growth of Computing
Accelerated computing is being rapidly adopted across industries and large-scale production deployments. Because new compute demands are outstripping the capabilities of traditional CPU-only servers, enterprises need to optimize their data centers-making this acceleration a must-have. The NVIDIA data center platform is the world’s leading accelerated computing solution, deployed by the largest supercomputing centers and enterprises. It enables breakthrough performance with fewer, more powerful servers, driving faster time to insights while saving money.

The platform accelerates a broad array of workloads, from AI training and inference to scientific computing and virtual desktop infrastructure (VDI) applications, with a diverse range of GPUs. For optimal performance, it’s essential to identify the ideal GPU for a specific workload. A guide to those workloads and the corresponding NVIDIA GPUs that deliver the best results is provided on the next page. Click here.

Normally, in predicting corporate earnings — like those coming from Nvidia on May 22 — you don’t have this serendipitous Haiku.

That’s why I’m opting for the lights.

And why I’m buying even more Nvidia.

Look at the chart above again. It’s remarkable.

The search biz will never be the same

There are three reasons:

  1. There are zillion new entrants — from Perplexity, to Open AI on down.
  2. Amazon is now a major player. Say you’re looking for slip-on shoes. You used to google your search. Now you go straight to Amazon.
  3. AI/ChatGPT is changing search. How so? According to Wired, “Every time a person searches, Google is attempting to make an algorithmic value judgment behind the scenes as to whether it should serve up AI-generated answers or a conventional blue link to click. “If you search for, you really just want to go to,” Reid says. “But if you have an extremely customized question, that’s where we’re going to bring this.”

I asked several “search” engines, including Google, Perplexity, Bing and ChatGPT (now Chat-40) “Where’s the best place to watch the Northern Lights?

The results were all different — not a little different. A lot different! So different that I wanted to keep trying.

I eventually asked ChatGPT to make me a travel plan to see the northern lights. It was a thousand percent better than any travel agents could put together.

The hype over AI is warranted. Here’s a short video introducing GPT-40, the latest iteration of ChatGPT. It will blow you away. Watch to the end.

This is very funny.

And very sad. It highlights what great stock pickers our congress-people (both houses) are — especially with the benefit of their insider information.

Donald is on trial for… well you know

Someone is peddling these buttons (or should be)

And while we’re at the absurd,

Here’s the latest Borowitz Report

That’s it for now.

You’ll find the list of stocks we own in the right hand column on the web site.

If you’re not able to read this email, go to the web site and refresh. This new “upgraded” WordPress software isn’t.

See you in the next couple of days. Promise. Harry Newton