Nvidia mentioned a host of portfolio tech giants in its post-earnings conference call Wednesday evening â customers of the company’s artificial intelligence and accelerated computing capabilities. Shares of Nvidia surged nearly 15% on Thursday after the company delivered an unbelievable quarter and strong guidance. Management pointed to a revolution coming in the computing infrastructure, hardware, and software to power AI. That translates into strong demand for Nvidia’s graphics processing units (GPUs). From enterprise software and consumer internet companies, these high-performance chips are needed to run machine learning, automation, and accelerated computing. Nvidia is only “scratching the surface,” Jim Cramer said Thursday during the Investing Club’s Morning Meeting . There are “major companies and verticals that have not even considered the H100” yet, he added, referring to Nvidia’s AI must-have GPU. Companies will need to update their traditional general computing capabilities with Nvidia’s chips, which are much faster and more efficient, Jim explained. This is why CEO Jensen Huang is calling it “the new industrial revolution,” he concluded. A few weeks ago, we combed through the latest earnings reports from Google-parent Alphabet, Microsoft, Meta Platforms and Amazon to see how their AI spending plans are benefitting Nvidia. After Wednesday evening’s killer quarterly release, Nvidia talked about how it is helping the businesses of fellow Club names Google, Microsoft, Meta and Amazon. Meta Platforms On the call, Nvidia CFO Colette Kress talked about how consumer internet companies, like Meta , are early adopters of AI in need of Nvidia’s technology to support their products. “Companies from search to e-commerce, social media, news and video services and entertainment are using AI for deep learning-based recommendation systems. These AI investments are generating a strong return by improving customer engagement, ad conversation and click-through rates. Meta in its latest quarter cited more accurate predictions and improved advertiser performance as contributing to the significant acceleration in its revenue,” Kress said. Meta requires highly intensive AI and machine learning computing, which are the foundation for the algorithms that run Meta’s ecosystem of social media apps. To cover its computing and storage needs, the tech firm has been building next-generation AI infrastructure called Meta Training and Inference Accelerator. Meta’s inference uses Nvidia’s chips. CEO Mark Zuckerberg said last month that by the end of 2024, the company’s AI infrastructure will include 350,000 Nvidia H100s â billions of dollars worth. Microsoft and Alphabet Kress also covered Microsoft and Alphabet ‘s Google: “The field of foundation large language models is thriving, Anthropic, Google, Inflection, Microsoft, OpenAI and xAI are leading with continued amazing breakthroughs in generative AI.” She added: “Just this [Wednesday] morning, we announced that we’ve collaborated with Google to optimize its state-of-the-art new Gemma language models to accelerate their inference performance on Nvidia GPUs in the cloud, data center and PC.” Alphabet continues to heavily invest in AI applications to improve the performance of its services including Google DeepMind, Google Services, Gemini, and Google Cloud. Management expects expenses in 2024 to be “notably higher” than last year due to the opportunities AI offers its users, advertisers, and developers. Meanwhile, Microsoft has also noted the importance of AI spending. “By infusing AI in every layer of our tech stack, we are winning new numbers and helping drive new benefits and productivity gains,” Microsoft CEO Satya Nadella said during the company’s post-earnings call. Microsoft’s Copilot is just an example of how generative AI is transforming the company’s suite of software. Amazon “We also made great progress with our software and services offerings which reached an annualized revenue run rate of $1 billion in Q4,” Kress said. “Nvidia DGX Cloud will expand its list of partners to include Amazon’s AWS, joining Microsoft Azure, Google Cloud and Oracle Cloud. DGX Cloud is used for Nvidia’s own AI R & D and custom model development as well as NVIDIA developers,” Kress said. Nvidia’s annualized revenue run rate in its software and services offerings reached $1 billion in the fourth quarter. That top-line growth was supported by demand for Nvidia’s chips from Amazon ‘s cloud unit, Amazon Web Services. AWS offers customers its own proprietary AI chips to build and run AI applications while also providing access to Nvidia chips as a way to compete with other top cloud providers like Microsoft. (Jim Cramer’s Charitable Trust is long NVDA, META, MSFT, AMZN, GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . 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In this photo illustration, the Nvidia logo is seen displayed on an Android mobile phone.
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Nvidia mentioned a host of portfolio tech giants in its post-earnings conference call Wednesday evening â customers of the company’s artificial intelligence and accelerated computing capabilities.
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