Interactive: What Futuristic Transport Will You See in Your Lifetime?
What Futuristic Transport Will You See in Your Lifetime?
We are on the cusp of a revolution in transportation.
While there are still no flying cars yet, perhaps that is for the better.
Instead, it is the integrated application of ultra-fast processors, high-tech sensors, the sharing economy, battery technology, and deep learning that will revolutionize how automobiles operate.
The impact will be profound: by 2035, 90% of cars are expected to be driverless and electric. Further, even the ownership of cars will likely be a thing of the past.
The Future of Transportation
Today’s interactive piece comes to us from RS Components, and it shows how the technology around transportation will change in our lifetimes.
And it’s not just driverless cars that are taking over.
For example, Hyperloop One and skyTran are two interesting transportation projects that could online in the next 10 years, changing how we move between cities. Originally based off Elon Musk’s famous 2013 whitepaper, the first commercial Hyperloop is expected to allow travellers to move between Dubai and Abu Dhabi in just 12 minutes. For smaller distances, the skyTran will be a new system of monorail that could travel up to 150 mph (240 kph) above existing roads, using very little energy.
Further into the future, the world of transportation will be very different.
If you thought in-flight WiFi is cool, then the future of flight in 2050 will be even more surreal. Airbus predicts that panoramic windows, holographic communications and entertainment hubs, and sonic disruptors will allow people to observe, chat, and be entertained via in-flight experiences without disrupting other passengers.
Around the same time, Japanese corporation Obayashi is planning for its space elevator to be built and operational, stemming directly from the Earth’s equator. Using a 60,000 mi (96,000 km) carbon nanotube cable, a 1,300 ft (400 m) diameter floating Earth Port, and a 12,500 ton counter-weight, it would ship people and objects into space at an extremely low cost.
Such a feat of engineering and technology would revolutionize how we approach space travel.
Nvidia Joins the Trillion Dollar Club
America’s biggest chipmaker Nvidia has joined the trillion dollar club as advancements in AI move at lightning speed.
Nvidia Joins the Trillion Dollar Club
Chipmaker Nvidia is now worth nearly as much as Amazon.
America’s largest semiconductor company has vaulted past the $1 trillion market capitalization mark, a milestone reached by just a handful of companies including Apple, Amazon, and Microsoft. While many of these are household names, Nvidia has only recently gained widespread attention amid the AI boom.
The above graphic compares Nvidia to the seven companies that have reached the trillion dollar club.
Riding the AI Wave
Nvidia’s market cap has more than doubled in 2023 to over $1 trillion.
The company designs semiconductor chips that are made of silicon slices that contain specific patterns. Just like you flip an electrical switch by turning on a light at home, these chips have billions of switches that process complex information simultaneously.
Today, they are integral to many AI functions—from OpenAI’s ChatGPT to image generation. Here’s how Nvidia stands up against companies that have achieved the trillion dollar milestone:
|Joined Club||Market Cap|
|Peak Market Cap
Note: Market caps as of May 30th, 2023
After posting record sales, the company added $184 billion to its market value in one day. Only two other companies have exceeded this number: Amazon ($191 billion), and Apple ($191 billion).
As Nvidia’s market cap reaches new heights, many are wondering if its explosive growth will continue—or if the AI craze is merely temporary. There are cases to be made on both sides.
Bull Case Scenario
Big tech companies are racing to develop capabilities like OpenAI. These types of generative AI require vastly higher amounts of computing power, especially as they become more sophisticated.
Many tech giants, including Google and Microsoft use Nvidia chips to power their AI operations. Consider how Google plans to use generative AI in six products in the future. Each of these have over 2 billion users.
Nvidia has also launched new products days since its stratospheric rise, spanning from robotics to gaming. Leading the way is the A100, a powerful graphics processing unit (GPU) well-suited for machine learning. Additionally, it announced a new supercomputer platform that Google, Microsoft, and Meta are first in line for. Overall, 65,000 companies globally use the company’s chips for a wide range of functions.
Bear Case Scenario
While extreme investor optimism has launched Nvidia to record highs, how do some of its fundamental valuations stack up to other giants?
As the table below shows, its price to earnings (P/E) ratio is second-only to Amazon, at 214.4. This shows how much a shareholder pays compared to the earnings of a company. Here, the company’s share price is over 200 times its earnings on a per share basis.
|P/E Ratio||Net Profit Margin (Annual)|
Consider how this looks for revenue of Nvidia compared to other big tech names:
$NVDA $963 billion market cap, 38x Revenue
$MSFT $2.5 trillion market cap, 12x Revenue$TSLA $612 billion market cap, 7.8x Revenue$AAPL $2.75 trillion market cap, 7.3x Revenue$GOOG $1.6 trillion market cap, 6.1x Revenue$META $672 billion market cap, 6x Revenue pic.twitter.com/VgkKAfiydx
— Martin Pelletier (@MPelletierCIO) May 29, 2023
For some, Nvidia’s valuation seems unrealistic even in spite of the prospects of AI. While Nvidia has $11 billion in projected revenue for the next quarter, it would still mean significantly higher multiples than its big tech peers. This suggests the company is overvalued at current prices.
Nvidia’s Growth: Will it Last?
This is not the first time Nvidia’s market cap has rocketed up.
During the crypto rally of 2021, its share price skyrocketed over 100% as demand for its GPUs increased. These specialist chips help mine cryptocurrency, and a jump in demand led to a shortage of chips at the time.
As cryptocurrencies lost their lustre, Nvidia’s share price sank over 46% the following year.
By comparison, AI advancements could have more transformative power. Big tech is rushing to partner with Nvidia, potentially reshaping everything from search to advertising.
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