Historically, a few companies showed the potential of the Millionaire Maker more than Nafidia (Nasdaq: nvda). The technology giant shares have increased by more than 22,000 % over the past decade, generating many shareholders ’wealth In this process.
However, with a 3 trillion dollar market, NVIDIA is already the third largest company in the world. The increasing concerns about the sustainability of the spending of artificial intelligence devices raises questions about how much it can rise realisticly. Let’s dig deeper to find out what the future may carry.
Since the launch of Openai’s Chatgpt in 2022, technology giants have been scrambling to remain able to compete in the market Language models (LLMS), a type of artificial intelligence algorithm that can create conversation responses based on a trained data collection. To this end, they poured billions of dollars to buy and operate the advanced graphics processing units in NVIDIA to train these complex programs.
to The so -called bonds such as alphabet and AmazonThis spending makes the commercial logical Since they can “rent” their self -intelligence computing power to startups via their cloud computing platforms. However, for other major customers like Definition platforms (Who plans to spend $ 60 billion to 65 billion dollars to a large extent on behalf Capital expenses) The possible returns for pouring a lot of money in NVIDIA devices appear weaker.
It seems that dead are trying to stay related He – she no A clear way to achieve income. This may be a matter of time only before the company’s shareholders retreat from all this damaged spending It can be used otherwise For profits or sharing re -purchases.
While the current artificial intelligence spending may be not sustainable in the long run, this challenge has not yet appeared in the operational results of NVIDIA. The revenues of the third quarter jumped by 94 % to 35.1 billion dollars on the basis of the massive demand for the advanced data center for LLMS training.
Despite the sale of devices, its total margin of 75 % of its competitors from many software companies, which helps to increase income income approximately to $ 21.9 billion in the third quarter.
During the next seasons, products based on new architectural engineering for Nvidia Blackwell GPU are supported by continuous and profitable growth. So far, there is little evidence that the appearance of a low -cost Chinese Dibsic competitor (who claims to have trained the leading LLM in the industry on the “primitive” H800 chips) harms the demand for the latest NVIDIA chips.
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