The AI party is just getting started

From Market Insider:



All eyes are on Nvidia as it is scheduled to report its fourth-quarter earnings results on Wednesday after the market close.



Nvidia has spearheaded the excitement seen in artificial intelligence technologies, and investors will look to the company’s results to see if the hype can continue.



Wall Street analysts are laser focused on the company’s demand outlook for its AI-enabled H100 GPU chips, which can sell for upwards of $40,000, as well as its planned product roadmap over the next year.



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Revenue: $20.41 billion



GAAP earnings per share: $4.23



Adjusted earnings per share: $4.60



Gross margin: 75.4%




While Nvidia has seen incredible demand for its chips from cloud hyperscalers like Microsoft and Amazon, regulatory hurdles have curtailed its ability to sell chips to China, which made up about 20% of its total revenue last year.



Driving much of the strength in Nvidia’s business has been its exposure to data-centers. Investors will be looking to see just how much demand could be left for the data-center market, and whether Nvidia has lost any market share to its competitors like AMD.



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“The AI revolution starts with Nvidia and in our view the AI party is just getting started,” Ives said.



“While the Street across the board is anticipating another major ‘beat and raise’ special from Jensen & Co. its all about the pace of data center AI driven spending as the only game in town for GPUs to run generative AI applications all go through Nvidia. We believe peak spending is still ahead for the AI market as many enterprises head down the AI use case path over the next few years and we are expecting more good news from the Godfather of AI this week,” Ives said.



Link to the rest at Market Insider