Investment trust Scottish Mortgage revealed that it has lowered its stake in AI-darling Nvidia on Friday as it warned of unsustainable costs related to the technology's adoption.
Scottish Mortgage Inv Trust
08 November 2024 09:56:29
Source: Sharecast
"The primary challenge hindering large-scale AI adoption remains the high cost. Companies must find ways to offer competitively priced AI systems while managing the skyrocketing costs of training them. This raises concerns about the sustainability of current capital equipment spending, including Nvidia chips," said investment manager Baillie Gifford & Co's Tom Slater.
Scottish Mortgage, which did not disclose exactly how many Nvidia shares it had offloaded, also said its net asset value had risen 1.9% in the six months ended 30 September, lagging the FTSE All-World Index at 3.6%.
As of 0955 GMT, Scottish Mortgage shares were down 0.18% at 909.20p.
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