Companies everywhere confirm AI is happening 🤖
More evidence that this emerging tech is actually being implemented 📈
Nvidia, a leading provider of artificial intelligence (AI) hardware, reported yet another blowout quarter on Wednesday.
Revenue surged 262% year-over-year to $26 billion in Q1. Data center revenue, which includes chips used in generative-AI computing, jumped 427% to $22.6 billion. Adjusted earnings per share rose 461% to $6.12.
“The next industrial revolution has begun — companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” said CEO Jensen Huang. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.”
“Our data center growth was fueled by strong and accelerating demand,” he added.
“Demand” continues to be the operative word.
About a year ago, back in June 2023, I asked a panel of BlackRock analysts if the AI story was getting ahead of itself in terms of surging stock prices. They didn’t think so. BlackRock CIO Tony DeSpirito told me: “The demand is really real. ... The orders are there.“ (We also talked about this at the 13-minute mark on The Compound & Friends podcast in July.)
Unlike other speculative tech booms — like blockchain or 3D printing or whatever, where business leaders spoke a lot about “exploring” the potential — companies today are actually “ordering” AI technology and “deploying” it right away.
According to Goldman Sachs, 41% of S&P 500 companies mentioned AI during their Q1 earnings calls in recent weeks.
And these discussions are happening across industries.
Check out some of these anecdotes Goldman Sachs analysts flagged from recent quarterly earnings calls (emphasis added):
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