Huge! This week NVIDIA's market cap passed both Google and Amazon for the first time in history 😳 CEO Jensen Huang explains why this is just the beginning👇

At the World Government Summit in Dubai, Huang just called for all countries to develop sovereign #Artificial Intelligence infrastructure.

Given data is the new oil, every country needs to own the production of its own artificial intelligence.

So that each country could have its own AI with its own cultural norms/customs programmed into it.

It's the unsexy part of the AI boom but it's absolutely essential.

"You cannot allow that to be done by other people" - Jensen Huang.

Now, just imagine what that would do to Nvidia...🤑

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Artificial Intelligence

Huge! This week NVIDIA's market cap passed both Google and Amazon for the first time in history 😳 CEO Jensen Huang explains why this is just the beginning👇  At the World Government Summit in Dubai, Huang just called for all countries to develop sovereign #Artificial Intelligence infrastructure.  Given data is the new oil, every country needs to own the production of its own artificial intelligence.  So that each country could have its own AI with its own cultural norms/customs programmed into it.  It's the unsexy part of the AI boom but it's absolutely essential.  "You cannot allow that to be done by other people" - Jensen Huang.  Now, just imagine what that would do to Nvidia...🤑

Sam Mendoza

We’re already seeing Nvidia investing more in other companies: it spent $985 million on such investments in the last fiscal year compared with just $77 million a year earlier. That includes AI startups such as Cohere and Adept as well as bigger firms like Databricks. Still, at some point, the growth will level off. Microsoft, Amazon and Google have each developed their own AI chips which they’re using internally,which makes them less reliant on Nvidia’s chips. They’ve also developed networking equipment that speeds the flow of data between their servers—Microsoft most recently,which competes with Nvidia’s networking equipment that is supplied with its chips. Notably, Nvidia executives today lauded sales growth of its networking gear during the most recent quarter. 

Clearly, demand for Nvidia products from startups and big companies is strong enough right now to offset whatever alternatives are available. That could continue for a while. Nvidia CEO Jensen Huang predicted last week that $1 trillion worth of new data centers would be added over the next few years to handle AI computing. Even assuming some of the chips for those come from rivals, it implies plenty of demand for Nvidia chips. Its data center revenue last fiscal year totalled just $47.5 billion. OpenAI CEO Sam Altman seems to think even more money will be needed. In other words, Nvidia’s growth may not slow down for a little while yet.

We’re already seeing Nvidia investing more in other companies: it spent $985 million on such investments in the last fiscal year compared with just $77 million a year earlier. That includes AI startups such as Cohere and Adept as well as bigger firms like Databricks. Still, at some point, the growth will level off. Microsoft, Amazon and Google have each developed their own AI chips which they’re using internally,which makes them less reliant on Nvidia’s chips. They’ve also developed networking equipment that speeds the flow of data between their servers—Microsoft most recently,which competes with Nvidia’s networking equipment that is supplied with its chips. Notably, Nvidia executives today lauded sales growth of its networking gear during the most recent quarter.   Clearly, demand for Nvidia products from startups and big companies is strong enough right now to offset whatever alternatives are available. That could continue for a while. Nvidia CEO Jensen Huang predicted last week that $1 trillion worth of new data centers would be added over the next few years to handle AI computing. Even assuming some of the chips for those come from rivals, it implies plenty of demand for Nvidia chips. Its data center revenue last fiscal year totalled just $47.5 billion. OpenAI CEO Sam Altman seems to think even more money will be needed. In other words, Nvidia’s growth may not slow down for a little while yet.

NVIDIA, the company that owns 90+ market share of the GPU market has added, since the beginning of 2024, the entire value of Tesla to its valuation, more than 700 billion dollars.

And TEsla is worth more than..... the combined market value of many of the largest automakers. 🤯

NVIDIA, the company that owns 90+ market share of the GPU market has added, since the beginning of 2024, the entire value of Tesla to its valuation, more than 700 billion dollars.  And TEsla is worth more than..... the combined market value of many of the largest automakers. 🤯

Yeah. It’s like the world will survive without energy now, no more fuel needed. They will run their cars on AI and air!

Here's a crazy stat for you. 

Two years ago the S&P energy sector was 5x the size of Nvidia....today Nvidia is bigger than all the energy stocks in the S&P 500 combined: GS

Here's a crazy stat for you.   Two years ago the S&P energy sector was 5x the size of Nvidia....today Nvidia is bigger than all the energy stocks in the S&P 500 combined: GS

Cyril

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Nikolas Kong

All those worrywarts can relax. Nvidia did it again. The AI chip giant reported fourth quarter revenue of $22 billion, $2 billion ahead of its projection, and 265% higher than a year earlier. Even better, Nvidia projected its first quarter revenue would be $24 billion, indicating that growing competition is not yet doing much to dent its rocketship-like growth. The first quarter revenue projection implies growth from a year earlier of 234%.

Nvidia stock, which had sold off in recent days on anxieties about earnings, jumped 8% to $729, nearly regaining all the ground it had lost. Nvidia is now gushing cash like a North Sea oil rig. Free cash flow hit $26.9 billion in the fiscal year ended Jan. 31—more than Nvidia had generated in the previous five years combined. At this rate, Nvidia will have to think about what it does with the cash that is now piling up on its balance sheet. The company already buys back stock—it spent $9.5 billion on buybacks in fiscal 2023, down just a bit on fiscal 2022 despite the runup in its stock price—and pays a small dividend. So what else can it do with the money?

All those worrywarts can relax. Nvidia did it again. The AI chip giant reported fourth quarter revenue of $22 billion, $2 billion ahead of its projection, and 265% higher than a year earlier. Even better, Nvidia projected its first quarter revenue would be $24 billion, indicating that growing competition is not yet doing much to dent its rocketship-like growth. The first quarter revenue projection implies growth from a year earlier of 234%.  Nvidia stock, which had sold off in recent days on anxieties about earnings, jumped 8% to $729, nearly regaining all the ground it had lost. Nvidia is now gushing cash like a North Sea oil rig. Free cash flow hit $26.9 billion in the fiscal year ended Jan. 31—more than Nvidia had generated in the previous five years combined. At this rate, Nvidia will have to think about what it does with the cash that is now piling up on its balance sheet. The company already buys back stock—it spent $9.5 billion on buybacks in fiscal 2023, down just a bit on fiscal 2022 despite the runup in its stock price—and pays a small dividend. So what else can it do with the money?

Sam Mendoza

A group of likeminded people in Artificial Intelligence are talking about this.