TLDR:
- Nvidia is dominating the AI-focused Q1 earnings season without even reporting results yet.
- Mega-cap tech companies, including Microsoft, Alphabet, Amazon, and Meta Platforms, are investing heavily in AI infrastructure, with Nvidia’s H100 GPU chip being a popular choice.
Key Elements of the Article:
Nvidia is seeing strong performance in the first-quarter earnings season, with many mega-cap tech giants mentioning increased investment in AI infrastructure. This is reflected in the popularity of Nvidia’s H100 GPU chip, which supports AI technologies like ChatGPT and Anthropic. Elon Musk’s statement that Tesla will double its H100 GPU chips by the end of the year further shows the demand for Nvidia’s products.
Other companies like Meta Platforms and Microsoft are also significantly increasing their AI-related spending, with Meta purchasing large quantities of H100 GPUs from Nvidia. The cumulative capital expenditure of tech giants like Microsoft, Alphabet, Meta, and Amazon is expected to reach $205 billion in 2024, with a significant portion going to Nvidia for their AI chips.
While Nvidia faces competition from companies like AMD and Intel, recent earnings reports indicate that Nvidia is dominating the market in terms of AI chip sales. AMD’s MI300 AI chip is projected to generate much less revenue compared to Nvidia’s expected revenue of over $100 billion.