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Kevin O’Leary Praises A.I. Potential While Cautiously Navigating Nvidia’s Soaring Stock

In a recent interview, O’Leary Ventures Chairman and “Shark Tank” star Kevin O’Leary, who also happens to be an early investor in the booming stock of Nvidia, offered valuable insights into the Artificial Intelligence (A.I.) craze. He cautiously warned against policymakers interfering with market demand in the A.I. sector.

“Every time we get a huge technological shift, there’s fear and loathing. But in the end, the way to look at this, it’s just another tool,” O’Leary said on “Varney & Co.” Wednesday. “And I’m very, very optimistic that this particular tool will enhance productivity in America in remarkable ways.”

O’Leary emphasized the importance of not hindering the development of A.I. “Why would you put any kind of a harness on this?” he continued. “Because the best regulator for A.I. is the market itself. It’s so expensive that you need massive capital to make this move forward.”

O’Leary’s comments come at a time when Nvidia, a leading tech company in artificial intelligence innovation, is witnessing remarkable growth, with its stock recording its second consecutive record closing price on Wednesday.

Nvidia: Powerhouse of A.I. Innovation

Headquartered in Santa Clara, California, Nvidia has firmly established itself as an A.I. powerhouse due to its cutting-edge graphics processing units (GPUs) and semiconductors, which are integral to powering and training A.I. platforms.

Nvidia’s stock price surged this week from over $464 per share at Monday’s opening to more than $492 a share at Wednesday’s close. Even after hours, the stock continued its upward trajectory, rising by $1.06 as of 6:30 p.m. Wednesday.

Throughout 2023, Nvidia’s stock has seen an astonishing increase of 244%, soaring from $143 per share on January 3rd.

O’Leary also highlighted the significant impact of A.I. in other industries, stating, “An insurance executive claimed they can cut costs by 30% through the use of A.I. in their global sales operations. So I think the same will occur in multiple areas of our economy, all 11 sectors.”

Cautious Investment Approach

Despite the remarkable surge in Nvidia’s stock, O’Leary expressed caution about investing further in the tech giant. “I’m having a hard time with the valuation right now,” O’Leary explained. “It is wildly expensive. But it was part of a portfolio that was betting on semiconductors being a narrative for years to come, primarily around EVs. And I captured it in that play and it, of course, outperformed everything else.”

O’Leary also shed light on the substantial investments flowing into the A.I. sector from the venture community. “Only a year ago it was Web3. Now the hot new ticket in venture is A.I., but nobody’s making any money,” O’Leary said. “So you have to bet on all kinds of different players. Meanwhile, for the guys that are selling the picks and shovels, that’s Nvidia. I’ll go there.”

In conclusion, Kevin O’Leary’s insights underscore the transformative potential of A.I. while also recognizing the need for prudent investment strategies, particularly in the face of Nvidia’s soaring stock. As A.I. continues to reshape industries and economies, it remains a dynamic and evolving frontier that both investors and policymakers must navigate with caution and foresight.

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