

But it’s become a sort of punchline when it comes to AI stocks and mega-cap growth. ChatGPT became public in the fourth quarter and burst onto the scene in Jan. I hate to say it because Alphabet (NASDAQ: GOOGL, NASDAQ: GOOG) is such a terrific company.

While it’s possible that other technologies catch up to ChatGPT - and that Edge and Bing never displace its larger competitors - it’s clear that Microsoft does not plan on missing out on this trend and that should reassure investors that Nadella will once again be well-positioned in this technology. It’s being used to overhaul the company’s Edge and Bing platforms, as well as being integrated into its other enterprise platforms. Its internet browser Edge badly lags behind Chrome and Safari. Now though, Microsoft has put its massive balance sheet to work, pouring billions of dollars into ChatGPT’s parent company OpenAI. Its search engine Bing badly trails Google. That said, not all of Microsoft’s products hold a dominant position in their respective markets. Once considered an old-school tech stock deeply in need of a catalyst, Microsoft stock has rallied 645% since Nadella took over the helm in Feb. While Ballmer had all the enthusiasm that Huang has (and maybe more), the company continually struck out at key moments. However, Microsoft nailed its move into the cloud, and under CEO Satya Nadella, there’s been a rebirth in the stock. Under Steve Ballmer, Microsoft (NASDAQ: MSFT) fell behind in growth. But the long-term looks incredibly bright for this firm.

Could it be susceptible to a notable pullback as a result? Of course. Nevertheless, the company has been demonstrating the potential of AI for years now and its role in energy, drones, robotics, the cloud, autonomous driving, agriculture, education, healthcare…and just about every other industry out there. While AI may be new to many investors, Nvidia has been working on these advancements for a long time and it’s finally paying off. Has the stock run a tremendous amount? Yes. Admittedly that may just be me - and admittedly, that’s the whole point of his presentations. Huang talks with so much excitement, so much passion and so much upside that it’s impossible not to come away enthusiastic about Nvidia’s future. That power source is Nvidia. I always love watching Nvidia’s keynote presentations from its GTC events. If AI is going to take off (and it will), it will need a power source to make it a reality.
