TEK2day

Operating at the Intersection of Technology and the Capital Markets

    Tag: AI

    • 2024 Enterprise Software Budgets: Gen AI To Get Axed?

      Management teams are working through 2024 operating budgets and hopefully have figured out that interest rates will remain elevated for 2024. Companies carrying meaningful debt have no choice but to assume elevated interest will remain for the foreseeable future (we believe a 5 handle makes sense for the 10-year). In terms of the People budget,…

    • Palantir Remains Overvalued. Way Overvalued.

      PLTR attached itself to the AI hype and remains overvalued. Way overvalued.

    • AI Can’t Create Demand Out of Thin Air

      Some of the hyperbole that I hear around AI – Generative AI in particular – simply does not make any sense. For example, one of the things I hear from the Financial Media is that AI will help facilitate a soft landing. How so? AI can’t create demand out of thin air. Reducing the cost…

    • AI and Equity Dilution During Bubble Times

      Microsoft (ticker: MSFT) added $116 billion to its market cap yesterday as it announced that MSFT 365 users would be required to pay an additional $30 per month to use the AI-enhanced version of its productivity apps – Copilot. We wrote about Copilot back in March (HERE). Yes, AI-enhanced productivity applications by Microsoft and Google…

    • Is Generative AI Losing Its Luster?

      A look at Google Trends suggests that “Generative AI” may be losing its luster – at least insofar as the Google search term “Generative AI” is concerned. When measured over the past 90 days, the search term peaked on June 6th (see Google Trends chart below).

    • Generative AI Hype vs. Reality

      Advanced automation / AI offers a real customer value prop. AI has been deployed for decades. However, the hype around Generative AI is a different beast. It will take decades for Generative AI to generate the Economic Value required to justify the valuation run enjoyed by companies such as Nvidia (NVDA shares up 280% since…

    • NVIDIA Insider Sales Accelerated in Q2

      NVIDIA (ticker: NVDA) insider sales are at their highest level since Q1 2022. During Q2 2023, NVIDIA insiders sold $147 million of NVDA shares and purchased $0 NVDA shares. Two directors alone (Stevens and Jones), sold $99 million of NVDA shares during Q2. Insiders know NVDA shares are overvalued.

    • Inflection AI. Reasonable as AI Valuations Go?

      I believe that Inflection AI is yet to generate revenue. However, in this AI-bubble world, a $4 billion post-deal valuation on a $1.3 billion capital raise ($1.5 billion in total capital raised-to-date), sounds less crazy than the “AI”-related valuations I see in the public markets. If you have heard Bill Gates talking up “AI agents”…

    • Nothing To See Here. Or Is There?

      The equity market is too sanguine. Things feel too still. Could this be the calm before the storm, or, will another round of Fiscal stimulus and Fed easing abort the storm on the horizon, fiscal debt and inflation be damned? It is difficult to make a call on the fundamentals whether it be the price…

    • The AI IPO Is Coming

      A fully automated IPO process is not on the immediate horizon, but technology isn’t the barrier, institutional adoption is. Related TEKday article: How AI Will Conquer Financial Services