AI Begins And Ends With Nvidia
Despite the massive buzz on AI, only a few core companies that power the Age of AI will succeed. The high capital costs of research and development investment, the time required to take a product to market, and the ability to cross competitive moats create a massive barrier to entry. In fact, only a few vendors have shown significant profits in AI:
Expect Software Giant Hunters To Soon Be The Hunted In A Digital Giant's Quest For Growth
Six of the Magnificent Seven (Microsoft, Apple, Nvidia, Alphabet [Google], Amazon, Meta [Facebook]) stocks have entered the four comma club -over $1 trillion in market cap. With a combined market cap of over $13.2 trillion, these six players continue to defy physics with continuous quarters of double digit organic growth. Digital giants by definition have deployed five key strategies:
Run.ai's platform is Kubernetes-based and will help Nvidia customers distribute workloads across cloud, edge and data center infrastructure.
New Chips, New Business Models Ahead In Accelerated Computing
Nvidia stock is up 267% YoY. With over 10,000 people in physical attendance and up to 100,000 people virtually attending, this could be the largest AI conference. All eyes on the next wave for AI with CEO Jensen Huang ready to keynote at 1:00 pm PT at the SAP Center in San Jose. The key things to look for in the keynote:
Nvidia's data center business continued to surge and the company continues to raise its revenue guidance at a rapid clip.
Nvidia's ability to stay ahead of the curve is fascinating. Nvidia has dominated generative AI with GPUs that until recently were the only game in town for accelerated computing, but should a new buzzword turn up CEO Jensen Huang will be riding that wave too.
"Strong sales of the NVIDIA HGX platform were driven by global demand for the training and inferencing of large language models, recommendation engines, and generative AI applications," says CFO.
Nvidia launched its Nvidia H200 GPU, which will offer faster memory and more bandwidth for generative AI workloads. The H200 will ship in the second quarter of 2024.
Foxconn's AI factory based on Nvidia's platform will enable it to train models for workflows and run simulations before building physical systems.
What's good for Nvidia shareholders may give enterprise technology buyers pause. Nvidia needs competition.
CEO Jensen Huang said Nvidia is benefiting from its GPUs as well as its Mellanox networking and switch gear.
