Seventy-five — that’s how many times Nvidia’s management mentioned “AI” on their earnings call on Wednesday. The previous two calls? 43 and 18.
Getting a little bullish on AI now, are we?
Nvidia may be hopping on the trend, but their semiconductor chips have become an important part of running AI models.
Here’s why: UBS analysts say Nvidia’s chips are the only viable product to create AI systems — and that Microsoft’s ChatGPT tool uses ~10K Nvidia’s graphics chips.
Nvidia’s CEO said, “it’s a wake-up moment for the capabilities of AI” and that AI is at “an inflection point.”
Nvidia is launching new AI products out the wazoo:
- Working with tech giants like Amazon, Microsoft and Alphabet on generative AI tools.
- Establishing a new cloud-services business to make developing AI tools more accessible.
But analysts are loving it. Nvidia is forecasting higher sales of $6.5B for the quarter ending April — up from estimates of $6.35B.
These results sent soaring 14% yesterday, now up 65% for the year — topping the semiconductor industry’s 21% ETF).
Finally, some relief after a brutal year for the chips industry as PC and gaming revenue slowed.
- A major part of Nvidia’s business, gaming sales, is down 46% from a year ago.
- Bright side: Slightly higher than the previous quarter — a sign gaming is bottoming.
But Nvidia isn’t the only company benefiting. There’s another. Read on. Cliff so high, vertigo kickin’ in hard.
