“AI demand isn’t slowing; it isn’t stopping, and those who claim this is a phase or a hiccup in the market are clearly missing the significance.”
This has been a big week for investors banking on the inevitable growth of artificial intelligence. After the U.S. market’s close on Wednesday, Nvidia
NVDA,
+16.40%
released earnings that exceeded expectations. Also on Wednesday, another important event in the tech field took place: Intel’s
INTC,
-1.13%
first-ever chip foundry event in San Jose, Calif. It should not surprise you that both of these events were focused on AI, but what might surprise is just how connected they are, intertwining the fate of many of today’s tech giants.
Starting with the Nvidia earnings release, the results were excellent. It felt like the 20 minutes between market close and results release took hours, but when the earnings finally crossed the wire, the company showed $22.1 billion in revenue, up 23% over the previous quarter and 265% year-over-year. Margins have continued to rocket upward, hitting 72%. The data center business division that is responsible for AI products saw its revenue rise to $18.4 billion from $14.5 billion quarter-over-quarter. Nvidia’s outlook for next quarter is revenue of $24 billion and a margin of 77%. That’s a modest increase over the current results, but Nvidia is probably doing its best to limit expectations and help it produce another “beat and raise” opportunity three months from now. What these numbers tell us is that AI demand isn’t slowing; it isn’t stopping, and those who claim this is a phase or a hiccup in the market are clearly missing the significance. Nvidia doesn’t see any slowing of this insatiable need for AI computing, and all other indications from the tech industry corroborate this.
“Intel’s intent is to make as many of the AI chips the world needs as it can.”
Recently OpenAI’s Sam Altman made headlines when he said he was looking to find $7 trillion from a combination of governments and investors to rework how the world builds and distributes chip …
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“AI demand isn’t slowing; it isn’t stopping, and those who claim this is a phase or a hiccup in the market are clearly missing the significance.”
This has been a big week for investors banking on the inevitable growth of artificial intelligence. After the U.S. market’s close on Wednesday, Nvidia
NVDA,
+16.40%
released earnings that exceeded expectations. Also on Wednesday, another important event in the tech field took place: Intel’s
INTC,
-1.13%
first-ever chip foundry event in San Jose, Calif. It should not surprise you that both of these events were focused on AI, but what might surprise is just how connected they are, intertwining the fate of many of today’s tech giants.
Starting with the Nvidia earnings release, the results were excellent. It felt like the 20 minutes between market close and results release took hours, but when the earnings finally crossed the wire, the company showed $22.1 billion in revenue, up 23% over the previous quarter and 265% year-over-year. Margins have continued to rocket upward, hitting 72%. The data center business division that is responsible for AI products saw its revenue rise to $18.4 billion from $14.5 billion quarter-over-quarter. Nvidia’s outlook for next quarter is revenue of $24 billion and a margin of 77%. That’s a modest increase over the current results, but Nvidia is probably doing its best to limit expectations and help it produce another “beat and raise” opportunity three months from now. What these numbers tell us is that AI demand isn’t slowing; it isn’t stopping, and those who claim this is a phase or a hiccup in the market are clearly missing the significance. Nvidia doesn’t see any slowing of this insatiable need for AI computing, and all other indications from the tech industry corroborate this.
“Intel’s intent is to make as many of the AI chips the world needs as it can.”
Recently OpenAI’s Sam Altman made headlines when he said he was looking to find $7 trillion from a combination of governments and investors to rework how the world builds and distributes chip …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]