Many people refer to the surge in AI stocks by comparing it to the Dot Com bubble.
But nothing could be farther from the truth.
In the Dot Com Bubble people were buying dreams with companies that had no earnings and sometimes no product as well.
The DOT COM Bubble was all hype.
Because stock prices were driven by speculation rather than the underlying business fundamentals.
Conversely, today, the AI giants generate revenue…plenty of it.
And they are an integral part of the warfare that’s showing up on the battlefields around the world.
Huh?
Cue up: Everyone’s favorite stock to hate, NVIDIA.
NVIDIA’s sales are increasing at a dramatic rate, and while drones and the war in Ukraine are a contributing factor, the overwhelming driver is the massive global demand for AI infrastructure, not military applications.
But…and this is a Very VERY BIG BUTT…With the prospects of World War III on the horizon, NVIDIA could become the DuPont * of WW3.
(* Note: DuPont was labeled the Merchant of Death during the 1930s because the company made massive profits supplying gunpowder and explosives during World War I.)
Massive AI Warfare Demand
NVIDIA’s explosive growth is fundamentally tied to the AI boom. In its most recent quarter, revenue more than doubled year-over-year, reaching a record $96.2 billion.
And the core of this growth is its data center business, which alone generated $89 billion in revenue – a 117% increase from the previous year.
However, there is a new customer in the form of …wait for it… autonomous drones and robots designed to kill humans.
You probably don’t know that NVIDIA’s Jetson Orin series AI modules have become a critical component in combat drones used by both Ukraine and Russia.
They are essentially powerful, miniature AI computers designed originally for robotics, autonomous vehicles, and industrial vision systems.
But they are now being repurposed for war.
AKA…the Terminator scenario.
Another AI event that slipped under the radar occurred in July when a Russian drone equipped with an NVIDIA Jetson Orin module killed three civilians in Zaporizhzhia, Ukraine.
The drone reportedly had no remote-control link.
Translation: The AI system independently identified and struck the target, which was the propane tank at a gas station. This has been described as the first confirmed case of a fully AI-controlled weapon causing civilian casualties.
As a result, the 21st Century “Merchant of Death” has far more applications in AI Warfare compared to the Dot Com Bubble.
And it’s still in the early stages of development.
That’s quite an achievement when you consider NVIDIA’s humble beginnings as a startup focused on building 3D graphics processors for the PC gaming and multimedia markets.
Ironically (or NOT) many of the kids who grew up using NVDIA’s processors for games are now the ones taking the technology to the next level of major warfare.
Which translates into profitability.
Learn what other businesses are contributing to this massive growth of technology (AND WARFARE) in our upcoming September newsletter (HERE).
Share this with a friend…especially if they haven’t figured out that Arnold’s famous chilling words: “I’ll be Back!” has become a reality. They’ll thank YOU later.
And tell them:
