Did you see Apple’s announcement about integrating ChatGPT 4.0 into SIRI?

Yes, I hear people are excited, the price is up 12% since then

Well, that’s one way of putting it

The other is that Apple’s market cap has risen by $325bn in a few days,
more than the combined market cap of food giants Nestle ($280bn) + KraftHeinz ($40bn)

or Bank of America ($312bn)

So I read the Apple conference call to see what the fuss was about, but all I could find was,

“Suppose you want to create a custom bedtime story for your six-year-old who loves butterflies and solving riddles, put in your initial idea and send it to ChatGPT to get something back she’ll love.”

Surely there’s more to this than bedtime stories?

OK, how about,

“If you need menu ideas for an elaborate meal to make for friends using some freshly caught fish and ingredients from your garden, you can just ask Siri. Siri determines that ChatGPT might have good ideas for this, asks your permission to share your question, and presents the answer directly.”

Aren’t you a little worried that these are the best ChatGPT / Siri examples Apple could conjour up at their Worldwide Developers Conference?

mmm

But won’t this kickstart an iPhone refresh cycle?

Perhaps

But we can already get stories & recipes from our ChatGPT app

we don’t need expensive new iPhones

Besides, Apple hasn’t said what this will cost them, OpenAI is no longer an NPO

In the same vein, I read on Valérie Noël and the Syz Group‘s excellent weekly update, that Nvidia added $1trn in market cap in 32 days

Equal to Berkshire Hathaway which has taken Warren Buffett 60 years to build!

and since then it’s overtaken Microsoft to become the largest company in the world

So I think this level of euphoria suggests the AI hype is peaking

Nvidia will be fine, it’s the “gorilla” and has a “moat”

For now

But nothing stands still in technology – remember Nokia, Netscape, and Nortel?

They were once considered “gorillas”

And everyone thought Intel had a “moat” in chips …. until now

You see, in days gone by, castle moats didn’t keep enemies outside the walls forever

They drained them, filled them, tunneled under them, or built siege towers

And eventually, enemies stormed the castles

So Nvidia’s “moat” won’t last forever

And unlike previous tech winners, hashtag#NVDA‘s profit pool is being targeted by their largest CUSTOMERS!

And that’s different – Verizon and AT&T weren’t trying to compete with Cisco to design their switches & routers

Consider the recent examples:

wind energy
solar power
EVs
food delivery and
fintech

to remind yourself that

Narratives move markets in the short term

but

Numbers matter in the long term

And these AI numbers don’t add up

So you may be trying to solve the “riddle” of how to beat this market now

But be careful of telling yourself “bedtime stories” about the price being justified because “AI is changing the world”

That’s often a “recipe” for disaster