Artificial Intelligence Industry Stepping on the Next Level: NVidia
Nvidia is the leader in Graphic processor manufacturing which are used in datacentres and the gaming industry. Nvidia stocks are trading 30% off their peak prices, but have been recovering since the beginning of 2023 on the strong Q4 2022 earnings report. Q4 2022 revenues at $6.05 billion are above consensus by $31.6 million. However, revenues are still 20% lower year-on-year. Thus, some caution on these stocks should be exercised.
Most sales are coming from the data centre segment as its revenues was up by 11% year-on-year to $3.62 billion. Cloud solution companies are not rushing to expand their infrastructures amid macroeconomic uncertainties. Still, perspectives of the sector are seen to be positive. Analysts expect the data centre industry to expand by 14.1% in the coming eight years from $483.98 billion in 2022. Nvidia should benefit greatly from this expansion as it has the highest share of supplies.
Nvidia A100 GPUs are still in great demand, but they will soon be replaced by H100 GPUs that are nine times faster and are much better designed for NLP solutions that are used inside ChatGPT and similar neural networks. Nvidia is well known in the industry. Its chips are used by Microsoft Meta and Oracle to build supercomputers. Tech giant competitions in the Artificial intelligence sector are intensifying infrastructure renewals, making the sector a strong growth driver for the tech companies itself.
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