Source: Wall Street News
Author: Zhao Ying
“For every dollar of hardware sold by Nvidia, software vendors and SaaS vendors generate $8 in revenue.”
“Sister Mu Tou”, founder of Ark Fund, said that software providers will be the next beneficiary sector of the artificial intelligence frenzy.
On Wednesday, Cathie Wood, founder of ARK Invest, known for betting on “disruptive innovation,” said in an interview with the media:
Although Nvidia will perform well over time, Ark has moved on to the “next target,” and we are looking at software providers that are in a similar situation as Nvidia when we started buying.
The AI feast pushed Nvidia to a trillion dollar market capitalization, and Cathy Wood's flagship fund, known for betting on “disruptive innovation,” cleared its Nvidia shares in early January, missing out on a major rebound of 560 billion US dollars. Sister Mutou previously defended herself, saying that there is a risk that chips are cyclical.
Sister Mu Tou further pointed out that the larger market for artificial intelligence is actually in terms of software. She said:
For every dollar of hardware sold by Nvidia, software vendors and SaaS vendors generate $8 in revenue.
Now, Sister Mu Tou is betting that she expects to eventually grow to software stocks the size of Nvidia, for example$UiPath (PATH.US)$,$Twilio (TWLO.US)$And, its fund holds this$Teladoc Health (TDOC.US)$Three stocks.
New York-based UiPath rose above $85 per share after listing in 2021, then plummeted about 80%; San Francisco-based Twilio fell 85% from its peak in 2021, while Teladoc Health fell more than 90% from its high in the same year.
Furthermore, Sister Mu Tou reiterated that Tesla is “the largest AI concept stock.”Autonomous driving technology is expected to drive its stock price up from around $200 now to $2,000 in 2027.
We believe the global autonomous taxi platform's revenue will be almost zero to 10 trillion dollars by 2038. Many people think Tesla is an automobile stock; we don't see it that way; it's far more than just building cars.
It is worth mentioning that the performance of the Mutou Sister Fund has been sluggish recently. The Ark Innovation ETF has fallen by more than 10% since its peak in early February, while the Nasdaq 100 Index jumped 12% during the same period.
Editor/Somer