Welcome to Extreme Investor Network, where we bring you the latest and most valuable insights into the world of finance. Today, we’re diving into the dominance of Nvidia in the first-quarter earnings season, even before they have reported their results.
Nvidia, a key player in the tech industry, has been receiving nods from mega-cap tech companies like Microsoft, Alphabet, Amazon, and Meta Platforms. These companies are boosting their investment in AI infrastructure, with Nvidia’s popular H100 GPU chip being a key player in the mix.
Words like “AI Infrastructure” and “generative AI” have been consistently mentioned on earnings calls, hinting at more money being directed towards Nvidia for its H100 GPU chip. Priced at upwards of $40,000, this chip enables the AI technologies that power platforms like ChatGPT and Anthropic.
The anticipation is high as Nvidia gears up for the release of its next-generation AI chip, named Blackwell, later this year. And the confidence in Nvidia’s technology is further validated by Tesla CEO Elon Musk, who mentioned on his company’s earnings call that Tesla will more than double its H100 GPU chips by the end of the year.
Furthermore, mega-cap tech companies like Meta Platforms and Microsoft are increasing their capital expenditures to invest in AI infrastructure. Meta Platforms recently announced the purchase of 500,000 additional GPUs from Nvidia, bringing the total to 1 million with a retail value of about $30 billion.
Meanwhile, Nvidia’s competition, like AMD and Intel, are also making moves in the AI chip space. However, recent earnings results suggest that the majority of the business is still going to Nvidia, with expected revenue of over $100 billion this year.
Investors eagerly await Nvidia’s earnings results, set to be announced after the market close on May 22. Stay tuned to Extreme Investor Network for more updates on Nvidia’s financial performance and market dominance.
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