The Icarus Files: What’s next for Nvidia and AI

Of the ten companies that have ever reached the pinnacle of being the largest in the S&P 500, Nvidia got there fastest. Nvidia then became a pace-setter with respect to innovation, profitability, vendor financing and advocacy against the US ring-fencing China. In a matter of days, at a time of intense debates about the future of AI and US government chip policy, and at a time of increasing competition in the world of GPUs and other accelerators, Nvidia’s CEO flew too close to the sun, resulting in a change in Nvidia management. In the attached note, we explore the critical issues for investors.