Nvidia gets bullish on AI; $NVDA jumps on strong outlook – The Average Joe
Business Economy Tech Subscribe About Us

    Nvidia gets bullish on AI; $NVDA jumps on strong outlook


    February 23, 2023

    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 1 deposit casino nz.com, 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 $NVDA soaring 14% yesterday, now up 65% for the year — topping the semiconductor industry’s 21% ($SOXX 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.

    Trending Posts