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For a hammer, everything looks like a nail. For a chips manufacturer that feed artificial intelligence, everything seems like a “file”. That is the industry jargon for information units that an AI model and the striker. The founder of Nvidia, Jensen Huang, believes that the world is on the cusp of a symbolic explosion. The market capitalization of $ 3.3TN of your company depends on it.
Nvidia reported $ 44 billion of revenues in the three months that ended in April, 69 percent more than a year earlier, and more than analysts expected, according to LSEG. The company remains the greatest beneficiary of the AI boom, with little competition when it comes to the latest generation chips reflected in a gross margin of 71 percent.
That is not exempt from hiccups. Nvidia Tok at $ 4.5 billion as a result of the export curbs that have frozen it from China, a market that the company believes that it could represent $ 50 billion or annual income. Nvidia had already been forced by the White House to sell only one minor version of her chips from AI to the People’s Republic. The Writadown would have been larger if Nvidia had not managed to reuse the unveiled parts in other places.
Fortunately, where it closes, a window opens. The sales of the new Blackwell AI chips of the company are expanding, apparently faster than expected. Morgan Stanley analysts, for example, expected the current quarter that ended in July generated $ 43.5 billion or revenues, after losing $ 5 billion in forgiven shipments to China. On the other hand, the company says it expects $ 45 billion, just after eliminating $ 8 billion or lost sales.
In addition, a new wave or “factories” of AI is emerging to fill a hole in China. The big technological companies, from Alphabet to Oracle, were already planning gigantic data centers, and now governments are entering the act. Saudi Arabia, the United Arab Emirates and Taiwan are accumulating in the “sovereign” backed by the State. Huang will travel to Europe next week, a trip that can produce more big pronouncements.
Then there is the growth of Token, which means even more chips demand, which comes from companies that find practical uses for increasingly complex models. The construction of the data center has already added 1 percentage point to the US GDP. In the first quarter, Global Apollo Management Note strategists. The launch of “reasoning” bots that think, verify and verify twice before responding can end up using 1,000 times more data fragments by consultation than in the simplest and most previous models, Huang argues.
Will everyone use Nvidia chips to do it? For now, it is more or less the only game in the city. The closest rival of the United States, AMD, brings together only one income. The brains, an ambitious upstart backed by Abu Dhabi, start from a low base. And that gross margin gives Nvidia a lot of fire power to compete in the price, if that becomes necessary. If the token of everything maintains its current rhythm, Nvidia has much more than working.