Rapid advances in artificial intelligence will “create more losers than winners” despite a recent rally on stock markets, according to one of the largest backers of chip giant Nvidia.

Rajiv Jain, founder and chief investment officer of GQG Partners, said Silicon Valley-based technology manufacturer, whose products power AI applications including ChatGPT, will be one of only a few US stocks that remain in positive territory after the markets’ recent rebound.

Nvidia became the first chipmaker to hit a $1tn valuation this week as investors stampeded into companies that are seen as the biggest beneficiaries from developments in AI.

Its shares have soared 170pc this year, adding $575bn to the group’s market capitalisation, with GQG buying $2.3bn of shares in the first quarter and since adding to its stake.

Mr Jain told the Financial Times: “In Nvidia’s context, it [AI] is going to create some winners and losers . . . more losers than winners.

“The most obvious winners at this point, besides Nvidia, will be the larger tech names, whether it’s Alphabet or Meta or these kinds of names.”

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