Godfather of AI Strikes Again

Daily Profit Investing Research
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A transformation is underway.

Data centers must upgrade to “accelerated computing.”

It’ll result in $1 trillion in spending over the next 5-years, according to Nvidia’s CEO.

That’s a 100% increase in spending from current levels!

Nvidia has an 80% share of this booming market.

THIS is the real reason NVDA is rallying after earnings.

Nvidia is now the 3rd most valuable company – worth $1.9 trillion. And it’s the best performing S&P 500 stock with 57% gains this year.

CEO Jensen Huang is the Godfather of AI.

Jensen hosted an investor call on Wednesday night. Here are a few big take aways…

1. AI is the biggest transformation since the internet.

“The world has reached the tipping point of new computing era. The $1 trillion installed base of data center infrastructure is rapidly transitioning from general purpose to accelerated computing.”

This transition is happening right now.

2. There is unstoppable demand for Nvidia chips.

“Overall, supply is increasing very nicely, but overall demand will continue to exceed supply through year.

Demand is surging worldwide across companies, industries and nations. There is no way we can reasonably keep up on demand in the short term as we ramp.”

3. Two Major Growth Trends

“We believe these two trends (accelerated compute and generative AI) will drive a doubling of the world’s data center infrastructure installed-base in the next five years and will represent an annual market opportunity in the hundreds of billions.”

4. Large Cloud Hyperscalers are 50% of Data Center Revenues

Nvidia is reaping profits from the large cloud computing companies – also known as “Hyperscalers.”

These companies include Amazon, Alphabet, Meta Platforms, Microsoft and Oracle. They’re increasing their capital investments to upgrade datacenters for AI computing.

“Large cloud providers represented more than half of our data center revenue, supporting both internal workloads and external public cloud customers.”

5. Software and Services Booming

Nvidia is getting into the “services” business. And it’s grown to $1 billion per year.

This sticky revenue is a huge positive. Much like when Apple Store began offering apps and content.

Nvidia is a rocket ship.

The stock was up OVER $100 per share yesterday.

Don’t sit on the sidelines. NVDA stock has already taken off…

Meanwhile, Tesla is the most overlooked AI play for 2024. And you’re making a big mistake if you’re ignoring Elon Musk.

Ian

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