John

Hi, I’m John Healy, Chief Investment Officer of Healy Wealth Management. Today I’m joined again by Kyle Grandstaff, our Portfolio Manager here. And today we’re continuing our topic of Market Myths and Realities. What we try to do is highlight news happening in the markets; how it can get any investor off track, and how we think about things that seem real but aren’t.

Today we’re going to talk about what’s happening in general with the whole artificial intelligence phenomenon. It really is changing the world.

Kyle

I agree- we’re kind of at this unique spot in history here. We think that AI really could redefine the computing landscape that we currently see. You know, I’ve been spending time just playing with ChatGPT to see what it does, and it’s quite fascinating what it can do and how quickly it can do it.

One of the leaders of the AI surge is Nvidia. They have 80% market share in the chips that drive all this AI processing. And if you look beyond Nvidia, at the Microsofts, the Amazons, and the Googles of the world, you know they can afford to spend a lot of money right now and accumulate these chips. They want to be at the forefront.

John

Investing in an industry where there’s so much change going on reminds me of the Internet. The world is changing, and we really don’t know who the winners are when it comes to individual investment selections. Nvidia right now is the winner, but the big question is, will they continue to be the winner?

There’s a lifecycle for a whole business. There’s a growth phase, there’s a sustainable growth phase, and then there tends to be a maturity phase for businesses. All businesses go through that cycle. And so, when we look at a business to buy, we look to buy it in the long run. And that’s how you get the true value of a business.

There’s a lot of things happening in the AI space, and there’s a lot more things to come, and it makes life exciting, right? So, we’d love to talk more with you about it. If you have any questions, disagreements, or you think we should take another look at AI, we’re open to conversation and please don’t hesitate to pick up the phone and give us a call.