AI is actually happening 🤖

Unlike past speculative tech, companies are actually implementing this one 🤔

Nvidia’s data center revenue has gone parabolic. (Source: The Transcript)

Nvidia, a leading provider of artificial intelligence (AI) hardware, reported a blowout quarter on Wednesday.

Revenue increased 265% year-over-year to $22.1 billion in Q4. Data center revenue, which includes chips used in generative-AI computing, surged 409% to $18.4 billion. Adjusted earnings per share rose 486% to $5.16.

“Accelerated computing and generative AI have hit the tipping point,” said Jensen Huang, CEO of Nvidia. “Demand is surging worldwide across companies, industries and nations.”

“Demand” is the operative word.

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.

Check out some of these anecdotes Goldman Sachs analysts flagged from recent quarterly earnings calls (emphasis added):