AI on cusp of 'exponential growth' with game-changing uses but stay diversified

Last month, US-based computer chipmaker Nvidia Corp surprised markets with sales guidance into 2024 that was much higher than expected, pushing its market capitalisation to US$1 trillion ($1.34 trillion), just behind the likes of Amazon and ahead of Meta. Nvidia, which produces highly sophisticated chips central to building AI models such as ChatGPT, has more than tripled since October 2022, far outpacing any other member of the broad-market S&P 500 index.

This breakthrough for Nvidia marks the beginning of the AI boom that analysts have been speculating about since 2021. Fortune Business Insights had estimated that the global AI market size would grow at a CAGR of 40% to reach US$360.4 billion by 2028 before ChatGPT made waves. Today, it is projected to grow to US$2.025 trillion by 2030 from US$515.31 billion this year.

The growth trajectory is tantalising for any onlooker and businesses and investors alike will quickly ask themselves how they can cash in on this boom. Asset managers observing the space for almost a decade say that Nvidia’s explosion was years in the making.

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