Strategic Foresight - Insights in Business and Technology

How DeepSeek's Challenge Actually Strengthened NVIDIA's Market Position The emergence of DeepSeek, a Chinese AI startup, initially sent shockwaves through the market, raising fears of disruption to NVIDIA's dominance in the AI chip market. DeepSeek's claim of developing an advanced AI model with significantly lower computing costs triggered a sharp market correction, wiping out nearly $750 billion from NVIDIA's market capitalization in a week. However, this seemingly negative event has, paradoxically, strengthened NVIDIA's long-term market position.     The Initial Shock and the Correction: The initial market reaction was swift and decisive, with NVIDIA's stock price dropping by 6% while the Nasdaq remained relatively flat. This correction, while painful in the short term, has resulted in a more attractive valuation for NVIDIA. The forward P/E ratio has compressed from a lofty 40x six months ago to a more reasonable 32x. This reset makes NVIDIA more appea...

 Let's break down how Snowflake, Palantir, and Databricks work together in the AI world, using a technology stack analogy and real-world examples. The AI Technology Stack Think of building an AI-powered company like building a house. You need a solid foundation, a smart design, and skilled builders. Foundation (Data): Snowflake Layman's Terms: Snowflake is like the concrete foundation of your AI house. It stores all your data in one organized place, making it easy to access and use. It's not just storage; it's like a super-organized library where any information can be found instantly.   Technical Function: Snowflake is a cloud-based data warehouse. It allows companies to store vast amounts of structured and semi-structured data, making it readily available for analysis and AI model training. It handles the messy work of data organization and access.   Example: Imagine a retail company. Snowflake stores all their sales data, customer information, inven...

Gen AI The New Reality - How Key Players Are Progressing About the Book  In the rapidly evolving realm of Generative AI, this book delves into the intricacies of this transformative technology, exploring its history, potential, and key players. It unravels the value chain, deployment models, and future trajectory of Large Language Models (LLMs) while shedding light on the growth opportunities in this domain. Embark on a journey through the world of chipmakers, where TSMC reigns supreme, pioneering the most advanced chips, yet facing its unique challenges. Discover the driving forces behind Nvidia's dominance as the "Godfather of AI" and analyse the potential for a dot-com bubble resurgence. Venture into the realm of Hyperscalers, where Microsoft stands as the undisputed king of AI in the cloud and software. Explore its strategic partnerships, the economics of training AI systems, and the inherent risks associated with its growth. Delve into the world of Google, the sear...

 Generative AI - Changing the World, Key Players and Their Progress - Part One  

Taiwan Semiconductor (TSMC) - The Chipmaker That Runs The World Key Indicators   Domain: Semiconductors  Comp. (Chip Manf) – Samsung, SMIC, GFS, UMC Growth Segment – HPC AI Chips (Up) Economic Moat – Wide Cyclical - Yes Key Customers (Total 530+) TSMC's revenue is made up of 26% from Apple and 7% from Nvidia. Apple has a 10-year partnership with the chip maker.  Apple designs chips for iPhones and Mac computers, while Google designs Tensor Chips for Pixel smartphones. Qualcomm and MediaTek design processors for Android phones. Nvidia designs Gaming and Artificial Intelligence (AI) processors and AMD and Nvidia design advanced processors for Tesla.  TSMC chips are also used by major cloud providers like AWS, MSFT, Google, Oracle, and IBM for data centres, networking, and software. Broadcom designs chips for broadband and wireless markets.   TSMC is able to offer its customers its manufacturing capabilities in the areas of Smartphones, High-Performance Comput...

Amazon Flywheel Phenomenon - Why AWS is The Crown Jewel  -- Amazon Evolution   Where is the Growth   Amazons Flywheel Phenomenon Amazons Multiple Flywheels  AWS The Crown Jewel  Amazon Chasing new Flywheel My other posts on Generative AI and Strategic Analysis of Key Players AI Value Chain   Microsoft the King of AI in Software ,  Salesforce under the AI Cloud   Tesla - It's not a Car, Its an AI Device on Wheels Google the King of Search - What the Future Beholds in the AI World Nvidia Godfather of AI - Why the Market is Bullish Generative AI can transform Telecoms ,  Energy and Utilities Source:  SeekingAlpha ,  Bloomberg ,  Martinfowler.com ,  Databricks.com ,  Nvidia ,  Google ,  AWS ,  Fourweek MBA Blog ,  Amazon ,  Ashwath Damodaran ,  TSMC