Tag: nvidia

  • Nvidia’s AI supremacy is a weapon that cuts both ways // While the chipmaker is the big winner from the booming technology, it is singularly exposed to changing expectations

    (FT)

    • Nvidia’s explosive growth: Company with nearly $200bn annual revenue achieved over 60% growth, defying norms for large firms.
    • Record earnings beat: Latest quarter exceeded analyst estimates for sales and profit, with full sell-out of current chips and orders piling up.
    • Massive revenue surge: $73bn growth in past four quarters surpasses entire yearly revenue of Morgan Stanley or IBM.
    • Unprecedented scale: Nvidia’s current growth pace at $4.5tn market cap dwarfs Google’s similar rate when it had $150bn valuation.
    • Monopoly advantages: 90% market share in AI chips yields 73% gross margins and strong pricing power, unlikely to face antitrust challenges.
    • Future revenue variability: Projections range from $4.6tn to $2.4tn by 2030, depending on AI investment estimates and potential market share erosion.
    • AI boom exposure: Nvidia’s dominance makes it highly vulnerable to shifts in demand or competition, unlike diversified rivals like Microsoft or Google.