AI Stocks: From Matrix Multiplication to Market Valuation
This blog discusses the AI-related stock market, which has delivered remarkable performance over the past several years and whose long-term outlook still appears favorable. Recent volatility in AI-related stocks is driven by extremely high market expectations colliding with uncertainty over the profitability of AI, while high valuations, interest-rate sensitivity, geopolitical risks, and export controls further amplify short-term price swings. The purpose of this blog is to better understand the outlook of the AI-related stock market. Before beginning, I would like to clarify that I am not a financial expert and have only been actively trading stocks for about one year. However, I do have expertise in mathematics, AI, engineering, medical imaging, and related fields. This background, combined with feedback from many friends and the assistance of ChatGPT, has helped me organize and articulate my thoughts more clearly. The AI market is actually a vast industrial ecosystem composed o...