Are AI companies overvalued?

Mitchell Green, Lead Edge Capital founding partner, joins 'Squawk Box' to discuss the state of the AI technology races, whether some AI companies are overvalued, and more.

[PP]

CNBC should really show the returns these fund managers have returned over the last 5-10 years before they just interview random fund managers/fund owners. They need to leave that data/chart on screen the whole time during the interview. That's "Street Cred".

[adamn]

Finally, someone saying the truth, I wish I could short private companies like open ai, Anthropic, and perplexity.

[issiewizzie]

CEO replaced the term "big data" with the phrase "AI".
The phrase this year from investors is "Show me the money".

[FoundingFathersUSA]

If he’s right, he didn’t prove it here.

[amarkmanpeters]

It’s early and he missed NVDA, PLTR, NOW, etc

[TheWizard]

He's right that it currently is not refined enough for wide adoption. It causes more manual processing to correct errors then it solves in my experience.

[IBendy]

Probably few are the whole AI is at the start of a financial and technology boom.

[thinking]

Was Bitcoin overvalued at $1? We are in $1 era of AI.

[chrisadams]

You just described what palantir can do

[skyak]

AIs proposition is like "Hey, instead of paying for a Rolex watch, pay us and you will see 100 or a thousand Rolex watches, each displaying a different time!" Making something un-scarce does nothing to increase value, and having 100 answers instead of one very good answer is not an improvement.

[xxxs]

2021, there were companies selling at 40x sales, we don't have that now

[jackmasonen]

This Mr alleged: Till now besides "entry-level white-collar jobs", he had not seen significant revenue improvement based on AI. Then, he repeated his Sales pitch: "My Lead Edge Capital is the best, come to us" .
What do you guys think ? is his observation accurate? Supposed if it were accurate, would the improvement stay at ""entry-level white-collar jobs" ?

[thinking]

I would argue AI companies are MASSIVELY undervalued. Compared to where their stock prices will be in 10 years, they are practically free.

[TruthSeaker-tq]

Also, it's not only 1, it's PLTR, AMZN, MSFT(OpenAI), Datadog, Snowflake, they are all making money, someone educate this clown please.

[DiFinni]

Palantir is no hype, no other company can do what they are doing now. He mentions Snowflake, they can't do everything that Palantir can do.

[babelfishdude]

AI is not just one company or technology. It is all of them.

Will AI be pharmaceutical and find the cure for cancer? Will AI be automotive and find new ways to improve batteries and electric engines? Will AI create new ways to use software?

Yes, and it will probably cook you dinner and drive you to work too.

AI is probably severely undervalued right now, IMO.

[travismrkvicka]

Palantir and Uipath- why is he so clueless?

[doug]

When the heads of the largest most successful companies push their chips to the middle of the table and say "all in!" I'm going to back them. Not some dude I've never heard of with a bad haircut. But that's just me

[mellarx]

Sigh...another fund manager. Giving them "fund managers, experts, analysts..." the platform to voice whatever they say is a shame. A very simple research is all you need. For example, NVDA, 5 years ago it was in the $40s for a LEADER in GPU, just a gaming card company at that time. So, the question at that time was, is it just a gaming card company? Where is it headed was the question at that time. Then came bit mining, why? Faster processing power, ah, now that's something. A little research, what is the company's milestone? Goal? Faster processing power, ah, data center. 5 years later, AI. NVDA now at $1, 140s. Just the beginning of AI. Main customers Google, Amazon, Meta, Microsoft. Now, Tesla. These are just tech customers. We're not even talking about sovereign AI. One country alone could buy them all GPUs if allowed. What's next? How about industries like, health care, finance, agriculture, utilities, safety, security...so many yet so few GPUs. That's why Jensen Huang said, "the demand is so strong." What's next? How about quantum computing? There's just not enough GPUs, even if competition goes on full processing power, pun intended. This is just a little research, no need for them "experts, analysts, fund managers..."

[pig_vig]

Because his company hasn't adopted it yet, right!