The Tech Titan’s Conundrum: Are Tech Stocks in a Rut, Has AI Lost Its Luster, and is ChatGPT All Hype?

“There’s a perception that the hype around AI has faded, and some even believe that ChatGPT was a mere fad. Nearly two years after its release, it’s still regarded by some as merely a tool for cheating on homework and exams. The fear-mongering around AI causing mass unemployment has led to a sense of skepticism among many workers.” These sentiments were expressed by Mr. Do Cao Bao, a member of the Board of Directors of FPT Corporation (stock code FPT), in a notable recent post on his personal Facebook page.

It is worth noting that Nvidia, one of the key players in the global AI revolution, has just announced its second-quarter financial results, surpassing analysts’ expectations. Both revenue and profits exceeded forecasts. However, the stock prices of Nvidia, Apple, Microsoft, and Google witnessed a decline ranging from 0.68% to 2.1%.

Mr. Bao argued that while stock prices might suggest a cooling of AI hype, the reality is quite the opposite. AI continues to evolve and make significant strides in practical applications. Technology companies remain steadfast in their substantial investments in AI. The slight dip in stock prices can be attributed to the overly high expectations of stock market investors regarding AI.

As evidence, Nvidia’s revenue reached $30.04 billion, marking a 122% growth, while profits soared to $16.95 billion, representing a remarkable 173.8% increase compared to the same period in 2023. The profit for the second quarter of 2024 alone was nearly four times higher than the entire year of 2023. In contrast, the economic growth rates for the same period were significantly lower: 2.7% for the US and 1.1% for the EU. This highlights that Nvidia’s profit growth far outpaced the economic growth of these regions, with a 64-fold increase compared to US GDP growth and a staggering 158-fold increase compared to EU GDP growth.

Mr. Bao also cited the example of tech giant Apple, which is set to introduce AI-integrated iPhones, marking the beginning of the Intelligence Phone era and a departure from the current Smart Phones. Beyond integrating ChatGPT, Apple’s AI iPhone will go a step further. Instead of merely writing emails, letters, theses, or summaries like ChatGPT, it will suggest words and phrases that accurately reflect the user’s intentions, desires, and content.

In the realm of autonomous driving, Waymo, a subsidiary of Google, operates 24/7 in San Francisco, Phoenix, and is preparing to expand to Los Angeles and Austin. Waymo currently offers 100,000 paid self-driving trips per week (14,285 trips per day and 5,214,285 trips per year). Tesla, led by Elon Musk, has 500,000 car owners utilizing the full self-driving function on public roads. A significant number of these owners have paid Tesla upwards of $8,000 for the self-driving system.

Turning to AI robots, Amazon has deployed 750,000 robots, including many AI-powered Sequoia robots, to efficiently manage inventory, search, packaging, and shipping in its warehouses. The integration of robots and intelligent automation has enabled Amazon to complete orders 75% faster, with higher accuracy and lower costs.

In reality, the tech giants remain steadfast in their AI investments throughout 2024. According to FPT leadership, the big four—Microsoft, Google-Alphabet, Amazon, and Meta-Facebook—have collectively invested $200 billion in AI. Aside from the US, China and Taiwan have also made substantial investments in AI, with their combined investments nearly matching those of the US.

Image: FPT’s strategic collaborations with major companies such as Gelex, Minh Phu, Dam Phu My, and Tran Duc Furniture.

In Vietnam, FPT has emerged as a shining star, reaping the benefits of the AI revolution across the board. The company’s success is not limited to overseas ventures, as it has also forged numerous strategic partnerships domestically, infusing AI into the management systems of enterprises from diverse industries, regardless of their size. FPT has formed alliances with prominent Vietnamese companies such as Gelex, Minh Phu, Dam Phu My, and Tran Duc Furniture. Most recently, the company signed a comprehensive strategic agreement with Prudential to review its entire system, with a particular focus on eClaims, a platform designed to facilitate end-to-end insurance claim processes.

During the first half of the year, the corporation secured 27 large IT contracts (valued at over $5 million each). Coupled with contributions from telecommunications and education sectors, FPT’s revenue surpassed the $1 billion mark in the first six months, with a 24% growth in net profit for the second quarter.

On the stock market, FPT’s shares have been on a remarkable upward trajectory, setting a new record for the 34th time by surpassing the 140,000 VND/share threshold in early August—a 70% increase since the beginning of the year. Consequently, its market capitalization reached a historic high of nearly 203 trillion VND, ranking third among the most valuable listed companies in Vietnam.

In recent news, the corporation also intends to establish an AI/GPUaaS factory in Japan, recognizing the strong yet untapped demand for AI in the region. Meanwhile, customers in the Asia-Pacific (APAC) region face data privacy challenges when accessing the corporation’s GPUaaS in Vietnam due to local government regulations.