Chey Tae-won, the chairman of SK Group, participated in a forum for South Korean commerce and industry, predicting that NVIDIA will dominate the market and continue to perform well for at least another three years following heavy investments in artificial intelligence. However, he cautioned that the AI sector may not generate sufficient revenue.
In addition to concerns about heavy investments in AI companies, Chey also indicated another risk: companies attempting to develop alternative chips to compete with NVIDIA’s products. If these competitors can sufficiently rival NVIDIA, it could pose a threat to the company’s business.
Previously, David Cahn, a partner at Sequoia Capital, analyzed that the increasing investment rates in AI may make it difficult to generate profitable returns, but did not specify when this investment trend may peak.
Nevertheless, Chey affirmed the significance of AI technology, emphasizing that we are still in the early stages. Even small companies have the opportunity to succeed if they adopt AI technology quickly.
The SK Group has greatly benefited from the AI trend, particularly due to SK Hynix’s significant market share in selling HBM memory. SK Hynix dominates a large portion of the HBM memory market.
TLDR: Chey Tae-won predicts NVIDIA’s market dominance for the next three years following heavy AI investments but warns of the risks involved. Despite challenges, he emphasizes the importance of AI technology and the opportunities it presents, with SK Group notably benefiting from the AI trend.
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