{"id":2010178,"date":"2023-08-23T23:44:02","date_gmt":"2023-08-24T03:44:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-bets-25-billion-that-ai-boom-is-far-from-over\/"},"modified":"2023-08-23T23:46:38","modified_gmt":"2023-08-24T03:46:38","slug":"nvidia-bets-25-billion-that-ai-boom-is-far-from-over","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-bets-25-billion-that-ai-boom-is-far-from-over\/","title":{"rendered":"Nvidia gambles $25B on AI&#8217;s enduring success."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnvidia-bets-25-billion-that-ai-boom-is-far-from-over%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2010178&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Stephen Nellis and Max\u200c A. Cherney<\/p>\n<p>(Reuters) \u2013     Nvidia\u2019s CEO Jensen Huang said he \u2062expects the artificial intelligence boom will last\u200d well\u200c into next year and made what could \u2064be the largest single bet yet in the tech sector to \u200bback up his optimism.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The company\u2019s sales forecast \u2064on Wednesday blew past Wall Street\u2019s expectations and it said it would buy back another $25\u2064 billion of its shares, a move most companies make when their leadership thinks the company is \u200dundervalued. Nvidia\u2019s\u200c stock\u2062 price, though, has more than tripled\u2062 this year and was set to\u2064 hit an all-time high after Wednesday\u2019s results.<\/p>\n<p>Nvidia said it plans to ramp up production of its hardware into next year, quashing doubts that a few analysts\u2062 had raised about how long the AI craze could last. The company has a \u2062near-monopoly on the computing systems used\u2062 to power services like ChatGPT, OpenAI\u2019s blockbuster generative AI chatbot. <\/p>\n<p>\u201cWe have excellent visibility through the year and \u2064into next year,\u200d and we\u2019re \u2062already\u200d planning the next generation infrastructure\u2062 with \u200cleading (cloud computing \u200bfirms) and\u200b data center builders,\u201d Huang told investors on \u200ca conference call.<\/p>\n<p>In\u200b an interview with Reuters,\u2064 Huang said two things are driving that demand: a \u2062switch\u200c from traditional data centers that were built around central processors to \u200dones built around Nvidia\u2019s powerful chips, and the rising use of content generated by AI systems in everything from legal contracts to marketing materials. <\/p>\n<p>\u201cThese two\u200c fundamental trends\u200c are what\u2019s behind everything that we\u2019re seeing, and we\u2019re about a quarter into it,\u201d he said. \u201cIt\u2019s hard to say how \u200dmany quarters are\u2062 ahead of us, but this fundamental shift is not \u200cgoing to end. This is not a one-quarter \u2063thing.\u201d<\/p>\n<p>Huang\u2019s move\u200b to buy back stock when it is more expensive than it has\u200b ever been tops\u2063 the bets that even\u2063 other large tech companies\u2063 are making on AI, but comes\u200c as its price-to-earnings multiple fell to about 43 from 60 after analysts upgraded \u200dtheir earnings estimates in \u200cMay. <\/p>\n<p>Microsoft\u2064 said the $10.7 billion\u200b in capital \u200cexpenditures it made in its fiscal fourth quarter \u2013 \u200ca large portion of which\u2064 went toward Nvidia\u2064 hardware \u2013 is a figure \u2064that would continue to rise. It\u2064 has\u200d also \u200cinvested $10 billion in OpenAI.<\/p>\n<p>Meta Platforms, Amazon.com\u2019s cloud computing unit AWS and others \u2063have also bet tens of\u200d billions of dollars collectively \u2062on \u2062AI-related hardware and\u2062 products. <\/p>\n<p>Demand for the \u2063chips has given Nvidia the cash for the\u2063 investor payday. The \u200dcompany \u200dreported its adjusted gross margins nearly doubled to 71.2% in its second\u200d quarter, when \u200bmost semiconductor companies have gross margins between 50% and 60%.<\/p>\n<p>Kinngai Chan, an analyst at Summit Insights Group said Nvidia\u2019s inventory \u2062of $4.32 billion is \u201clight.\u201d<\/p>\n<p>\u201cWe think (Nvidia) will continue to beat the $16 billion guide for the October quarter as demand continues to outstrip supply,\u201d Chan\u2064 said, referring to the company\u2019s third-quarter revenue outlook.<\/p>\n<p>To \u2062be sure, some analysts don\u2019t see unlimited demand. Dylan Patel of SemiAnalysis \u2063said many tech\u2064 companies are \u2063spending heavily on Nvidia graphics processing units (GPUs) this\u200c year before \u2063determining how they \u2063will actually make money off products developed with those chips.<\/p>\n<p>\u201cThey must overinvest in GPUs or risk missing the \u200cboat. At some point the true use cases will shake\u200b out, and many of these players will stop investing, \u200dthough others will likely \u2063continue accelerating investment,\u201d Patel said.\u200b <\/p>\n<p>Huang\u200c declined to comment on whether the AI boom will last past next year. He said the biggest\u200d risk\u2064 Nvidia faces \u2063is \u2063securing supplies. <\/p>\n<p>The company said the biggest sales driver \u2062this quarter was its HGX system, which is an entire computer built around Nvidia\u2019s chip. \u2064That system is much more complex than just the chip itself, and any missing \u200cpiece can delay shipments.<\/p>\n<p>\u201cWe\u2019re getting great cooperation \u2062from our supply\u2062 chain. And it\u2019s\u2062 a complicated supply chain,\u201d \u2064Huang told Reuters. \u201cPeople\u2063 think it\u2019s a GPU chip. But it\u2019s\u200b a very complicated GPU system. It\u2019s 70 pounds.\u2062 It\u2019s 35,000 components. It\u2019s $200,000.\u201d<\/p>\n<\/p>\n<p>  (Reporting by Stephen \u2064Nellis and Max Cherney in San Francisco; Additional reporting by Chavi Mehta;\u200c Editing by Sonali Paul)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/nvidia-bets-25-billion\/attachment\/file-photo-the-logo-of-nvidia-corporation-is-seen-during-2\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>Biden \u200dsays Putin is behind the Wagner Group Leader Prigozhin\u2019s downed plane, while America\u2019s Mayor, Rudy Giuliani, \u2062turns himself in.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>The rapper who gained viral fame with his hit song \u201cBoycott Target,\u201d Forgiato \u200dBlow, discuss \u200bhis timely new song that\u2064 tackles one of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-and-tucker-carlson-to-release-interview-online-as-gop-debates-commence\/\" title=\"Trump and Tucker Carlson to release online interview during GOP debates.\">biggest current news stories<\/a>: Trump\u2019s indictments.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>Make America Great \u200cAgain Inc.\u2062 spokeswoman Karoline Leavitt\u200c blasts President Joe Biden\u2019s \u200crecord on the economy, saying American voters will remember \u206345th President Donald Trump\u2019s booming success in that regard.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>Hawaii Governor \u2064Josh Green says\u200c he is considering pausing land \u2064purchases after residents report being contacted by \u200crealtors offering cash for \u200cdestroyed property.<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>By Ju-min Park SEOUL (Reuters) \u2013 South Korean internet\u2063 giant\u200c Naver unveiled on Thursday its own generative artificial intelligence (AI) tool, joining\u2026 <\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>By Chavi Mehta, Max A. \u2064Cherney and \u2064Stephen Nellis\u200c (Reuters) -Nvidia far exceeded expectations \u2064with its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newmont-gets-aussie-regulatory-nod-for-16-8-billion-newcrest-deal\/\" title=\"Newmont approved for .8B Newcrest deal by Aussie regulators.\">quarterly revenue forecast<\/a> on Wednesday as\u2026 <\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>(Reuters) \u2013 Apple \u200burged members\u2063 of the\u2062 California legislature to\u200d pass the \u201cright \u200dto repair\u2062 bill\u201d or \u201cSenate Bill\u2062 244\u201d as currently\u2026 <\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>By Noel Randewich (Reuters) -Nvidia\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-bets-25-billion-that-ai-boom-is-far-from-over\/\" title=\"Nvidia gambles B on AI's enduring success.\">strong quarterly \u2064revenue forecast delivered<\/a> on Wall\u2063 Street\u2019s high expectations on Wednesday, sparking gains in\u200b a range\u2026 <\/h2>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia&#8217;s CEO, Jensen Huang, predicts that the AI boom will continue into next year. To support his optimism, he made a significant bet in the tech sector. The company&#8217;s sales forecast exceeded expectations, surpassing Wall Street&#8217;s predictions.<\/p>\n","protected":false},"author":66,"featured_media":2010179,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2010178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2010178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2010178"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2010178\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2010179"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2010178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2010178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2010178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}