Technology
Monday, November 20th, 2023 8:26 pm EDT
Key Points
- Exceptional Financial Performance:
- Nvidia is expected to announce fiscal third-quarter results with a staggering revenue growth of over 170%. Projections for the fiscal fourth quarter suggest an even more impressive figure of almost 200% growth.
- In 2023, Nvidia’s stock price has surged by 237%, surpassing other S&P 500 members. The company’s market cap now stands at $1.2 trillion, exceeding that of Meta and Tesla.
- Challenges and Concerns:
- Analysts express high expectations for Nvidia’s fiscal third-quarter earnings call but highlight potential concerns related to China restrictions, competitive pressures, and any signs of cooling enthusiasm for generative AI.
- The emergence of AMD in the generative AI market poses a new challenge for Nvidia, which has been the dominant player in the AI graphics processing unit (GPU) market.
- Product Developments and OpenAI Shake-Up:
- Nvidia introduced the H200, an advanced GPU designed for training and deploying AI models driving the generative AI explosion. This technology facilitates the development of smarter chatbots and the conversion of text into creative graphical designs.
- The H200 is an upgrade from the H100, used by OpenAI to train the GPT-4 Turbo large language model. The H100 chips, part of Nvidia’s data center group, contributed significantly to the surge in revenue, reaching $10.32 billion in the fiscal second quarter.
- Nvidia faces questions on its earnings call regarding the major shake-up at OpenAI, a significant buyer of Nvidia’s GPUs. OpenAI’s CEO, Sam Altman, was fired over disputes about the company’s speed of product development and focus.
Nvidia is expected to report fiscal third-quarter results with over 170% revenue growth, and its fiscal fourth-quarter forecast indicates almost 200% growth. The company’s stock has surged 237% in 2023, outperforming the S&P 500 and reaching a market cap of $1.2 trillion. Wall Street is closely monitoring Nvidia, a key player in the artificial intelligence (AI) boom, particularly focusing on generative AI and potential challenges from competitors like AMD. Despite being the GPU market leader for AI, concerns about high prices and emerging competition from AMD have been raised. Nvidia recently unveiled the H200 GPU to address generative AI needs, following the success of its H100 chip used by OpenAI. Analysts anticipate questions on OpenAI’s recent shake-up during Nvidia’s earnings call and will scrutinize any signs of generative AI enthusiasm cooling. Potential challenges related to China restrictions and competitive dynamics are key areas of investor concern.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/20/nvidia-earnings-report-to-give-investors-peek-into-ai-demand-for-2024.html
