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CCTV Script 23/05/24

·2 mins

Overnight, NVIDIA’s latest quarterly earnings report garnered attention in the AI sector. The report revealed that both revenue and profit exceeded expectations, causing the stock price to surge in after-hours trading, reaching a historic milestone of over $1,000 per share. Notably, NVIDIA’s revenue reached $26 billion, surpassing market expectations of $24.65 billion. The data center segment, which includes AI chips and components for large AI servers, experienced remarkable growth of 427% year-over-year, generating $22.56 billion. NVIDIA’s CEO, Jensen Huang, mentioned the full production of the new AI chip, Blackwell, which is anticipated to contribute significantly to revenue. NVIDIA also issued guidance, projecting revenue of $28 billion for the current quarter, and announced a 10-for-1 stock split. Despite some Wall Street critics expressing concerns about competition from tech giants and smaller startups developing their own chips, supporters believe that NVIDIA’s established ecosystem and innovations will make it difficult for competitors to challenge NVIDIA in the next one to two years. Profitability for tech companies in the AI industry remains challenging, with strategies like offering products for free to drive user growth or implementing charges to cover costs. Amazon, for instance, plans to use generative AI to upgrade its Alexa voice assistant, charging a monthly subscription fee to offset technology expenses and compete with newer AI chatbots from companies like Google and OpenAI.