We get Gains reports Companies listed on the stock market each quarter. They are essentially a set of measures that illustrate the financial performance of a company, which investors generally compare to the estimates of Wall Street.
Most of them come and go without much fanfare. But this week, we will see a business report that everyone seems to look. He is already making the headlines, and the figures do not even come out before Wednesday.
The company is NVIDIA – A technology giantChipmaker and Bellwether for the artificial intelligence industry. But, it’s still a report on gains.
There are two main reasons for watching Nvidia, said Erik Gordon, professor at the University of Michigan business school. “The first is its size and influence on the stock market.”
Gordon said that last year, NVIDIA’s shares contributed 22% of the total gain of the S&P 500. The other reason? “The kind of NVIDIA of the poster of the AI poster. This is the way most of us can invest in AI. »»
Nvidia’s success is based on its graphic processing units, or GPU, representing approximately 90% of its market.
“During the Dot-Com era, there was something like 2,888 startups that became public. So far, no startup has become public for a generative AI, “said Peter Cohan, professor of management practice at the Babson College and author of a book on generative AI.
It’s not normal, said Cohan.
Nvidia has become such a gorilla in part because it made its debut before takeoff of the AI. Cohan said his GPUs were originally used for games.
“Then used for the exploitation of crypto, and now it has proliferated to be used by data centers that form and operate large language models like Chatgpt,” said Cohan.
Nvidia’s report this week attracts even more attention than usual, because more analysts have raised questions about its continuous domination. A problem, said Matt Bryson of Wedbush Securities: Deepseek, A Chinese AI companyIt was a sensation with its AI model and its chatbot in January.
“The development of China has suggested that you can do more with fewer material resources, so in this case, less Nvidia GPU,” said Bryson.
Nvidia’s shares plunged 17% after Deepseek’s announcement. The second point of vulnerability is New Superchip For the next generation of AI.
“There have been some adjustments in terms of production,” said Bryson.
But Bryson is not worried. He said the new chip increases after a slow start, and if Deepseek makes AI more affordable for more companies, it could actually increase the demand for AI equipment.
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