In recent years, artificial intelligence has experienced an explosive growth, with rapid development in both large models and computing power fields. Technology, products, and applications continue to innovate and iterate. What are the new trends and investment opportunities in the context of the AI upheaval?
On June 6th, the 2024 China Golden Yangtze Private Equity Fund Development Summit Forum, hosted by Securities Times and co organized by Changjiang Securities, was held in Wuhan. Dong Bin, Chairman of Dongfang Port, shared his views on the development trend of AI and related investment layout on the forum.
Dan Bin believes that humanity may have entered a fourth era - the era of artificial intelligence, where AI will bring tremendous changes and should be fully invested. The moment when humanity is similar to the invention of the steam engine.
Danbin revealed for the first time that due to a significant increase, Nvidia's holdings are now close to half. "And without any movement, there is money to continue buying. Nvidia is highly likely to surpass Microsoft in the future and become the world's largest company. The horn of the times has just begun."
It is worth noting that Dan Bin also shared an interesting phenomenon. People who have made a lot of money on Tencent have coincidentally bought Nvidia and Bitcoin in the era of artificial intelligence. The most difficult aspect of investment is the integration of knowledge and action, and the vast majority of people will miss out on an era.
The horn of the times has just sounded
Since the launch of ChatGPT, with a large influx of funds, the AI industry has become extremely hot. Understanding the development trends and prospects of the AI industry undoubtedly has a profound impact on investment layout.
It is understood that as early as 2022, some of Dongfang Port's products had heavily invested in American AI stocks, and their net value continued to break new historical highs, attracting market attention.
Danbin stated on the forum that humanity may have entered a fourth era, which is the era of artificial intelligence. The first three eras are the electronic hardware era, the Internet era and the mobile Internet era. If we believe that the era of artificial intelligence is a more breakthrough technology than the previous three eras, we should make every effort to invest in the field of artificial intelligence at this moment.
"When we were young, we also bought companies like Tencent, but we were a bit naive and made money. Now, 20 years later, I think we should be more determined and give it our all than when we were young. The products invested by Dongfang Harbor in the US stock market basically embrace this era 100%."
As an AI seller, Nvidia is undoubtedly the stock that has benefited the most from this round of AI, with its stock price constantly reaching new historical highs. Recently, its market value once surpassed Apple, becoming the second largest company in the world by market value.
Dan Bin pointed out that Nvidia is highly likely to surpass Microsoft and become the world's largest company in the future. "The horn of the times has just begun. Strategically, fully embracing this era has a high probability of winning."
Nvidia has nearly half of its positions
In terms of investment, how to look further, more accurately, and at the same time, hold on, ultimately results in vastly different performance.
Danbin stated that among the 8 fund managers at Dongfang Port, only he gave his all and invested heavily in NVIDIA from start to finish. "We are all top tier buyers because the price has increased significantly. Now Nvidia's position has reached 40% to 50%, and I haven't moved a single share. I have the money to continue buying."
Meanwhile, Danbin also lamented that the most difficult aspect of investment is the integration of knowledge and action. "In my long career, such as Tencent, there have been very few people who have made big money from Tencent. Those who have made big money from Tencent, this time in the era of artificial intelligence, have coincidentally bought Nvidia and Bitcoin, which is an interesting investment phenomenon."
Dan Bin said that investment is about who can see far, see accurately, dare to invest heavily, and be able to persist, all of which are indispensable. "You must have a phenomenal return, earning 100 times in a company is the true achievement. How to earn 100 times? You must hold a company's process from growth stocks to value stocks. The first three eras are basically opportunities for more than ten years. If last year was the first year of artificial intelligence, this era is likely to continue between 2034 and 2044, and you need to look at it from an industrial perspective for ten years."
Dan Bin believes that in the next decade, the first billion dollar company in human history is likely to be born among tech giants in the US stock market. "The competition in AI must be a competition of large investments. Amazon invested $85.3 billion in research and development last year, exceeding $100 billion this year, Google invested $100 billion in research and development, and Microsoft and OpenAI announced their investment of $100 billion. It is difficult to break through without investing to a certain extent, and the high probability of winning is for these companies that can afford the money."
Currently, investment is concentrated in the AI infrastructure layer
With the development of AI technology, artificial intelligence will continue to penetrate the consumer market, and opportunities for application and integration with consumer electronics will also receive attention.
Danbin said that currently our investment is mainly focused on the AI infrastructure layer, which can be attacked in advance and defended in retreat. The seven major technology giants in the United States are all concentrated in the AI infrastructure layer. On the application level, including software, most of the just released quarterly reports have plummeted without significant profit growth.
Frankly speaking, Dan Bin believes that many large-scale applications have been born in the Internet era and mobile Internet era, such as Google, Tencent, TikTok, Uber, etc. Large scale applications in the AI era, such as Apple's AI smartphones, may usher in a new wave by the end of this year and early next year.
Dan Bin pointed out that don't look at Nvidia's report, just look at "Huang Renxun's Law", which predicts that GPUs will drive AI performance to double year by year, and the speed of change far exceeds Moore's Law.
"Nvidia is likely to surpass Microsoft to become the company with the highest listing value in human history next week, even reaching $5 trillion, which will be a true revolutionary prelude or foreshadowing. Many revolutionary changes, including digital human technology, I think are coming soon. At a moment similar to the invention of the steam engine, humanity has reached a new turning point, and I strongly hope that we can live to witness all of this. We should live happily for another thirty to fifty years, welcoming even the possibility of immortality."