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But it has also faced several challenges in equal measure.
Gundlach says he’s “not interested in owning seven stocks.”
Seven stocks essentially refer to companies like Microsoft and NVIDIA, which currently rank highly in the stock market.
Market analysts believe this is predominantly because of itsearly investment in AI.
Gundlach admits that, unlike players in the dotcom era companies like Meta are profitable.
Interestingly, he pointed out that stocks have skyrocketed because of the interest cuts witnessed recently.
This explains why companies like Microsoft and Meta are enjoying great profit margins.
Gundlach warns:
“This is no place to be taking fresh, aggressive positions in anything risky.
There’s a lot of risk in markets that have run this far.”
Lastly, the CEO added that the raised price for crude oil will lead to accelerated inflation.
Is it the right time to invest in AI?
I feel like a new tech startup specializing in AI advances is popping up daily.
But really, investing is like flipping a coin.
you might either make insane profits or lose everything in the process there’s no middle/safe ground.
But at the very least, we can certainly say that Microsoft is all in with AI.
We have all the IP rights and all the capability.
And likewise there’s going to be A LOT of dud supposedly AI based companies.
Every fucking company is claiming to use AI now.
So the hype train is real, even if AI has tons of potential itself."
Elsewhere, OpenAI reinstated CEOSam Altman says GPT-4 “kind of sucks”.
The model will reportedly makeChatGPT"really good, like materially better."
