"Short Seller Chanos Scoffs At AI Hype, Nvidia Sells Shares."

Jim Chanos wasn't impressed when someone said that AI investors are too hungry. He thinks Wall Street can make more AI to meet the demand. Nvidia wants to sell $10 billion of stocks, which investors are excited about.

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On Friday, Jim Chanos criticized the excessive excitement about artificial intelligence. Investors are investing in Nvidia and other tech stocks, hoping to benefit from the new technology.

LVW Advisors' co-chief investment officer, Joseph Zappia, claims that the market cap is insufficient to back the artificial intelligence buying hype in a recent article of The Wall Street Journal.

Chanos said on Twitter, "Oh boy." He is famous for betting against Enron and Chinese real estate. He also said that Wall Street is skilled at making supply to meet demand.

Last week, the head of Chanos & Company talked about Nvidia's plan to sell $10 billion in new shares and other securities. Nvidia confirmed this plan.

Chanos tweeted about more AI market cap filings on Friday. He shared a screenshot of Nvidia's prospectus.

Nvidia's stock has gone up a lot this year. It's up over 160%. This happened because people are excited about AI. The company's sales guidance for the second quarter is good too. Now, the company is worth almost $1 billion.

Last quarter, the demand for AI made more people buy semiconductors. The company that makes graphics chips said this. Other companies that make chips, like Advanced Micro Devices and Marvell, went up in value because of this.

Lots of famous investors have started investing in AI. This happened because ChatGPT, an intelligent-language tool, caused a lot of interest in the market in the first three months of 2023.

Last quarter, Stanley Druckenmiller and David Tepper bought lots of Nvidia shares. Bill Ackman, who is also a billionaire, chose to invest in Google parent company Alphabet instead. Ackman thinks Alphabet is a good option for AI investments.

Chanos thinks AI stocks might be too expensive. They could be worth more than they should because traders expect the Federal Reserve to stop raising interest rates soon.

On Friday, Bank of America said that the AI boom may not last forever. The bank thinks it's just a "baby bubble". The bubble will pop when the Fed tightens its monetary policy even more. The Fed wants to stop high prices.

Experts wrote in a report that you shouldn't pursue this because money situations are becoming stricter. They mentioned past times when the stock market was trendy, but then interest rates increased.

Investors are betting big on AI technology. Many famous investors are investing in AI.