It's good when people with money like what you're selling.
From Barron's, April 26:
Updated April 26, 2024 9:54 am ET / Original April 26, 2024 6:41 am ETMicrosoft and Alphabet's CEOs both called out their use of Nvidia chips in earnings calls.
Nvidia stock was rising early on Friday, as the latest earnings reports from big technology companies showed continued investment in artificial-intelligence infrastructure.
Nvidia shares were up 1.3% at $837.19 in morning trading. The stock closed up 3.7% on Thursday.
Microsoft and Google-parent Alphabet emphasized their investment in AI technology in earnings reports on Thursday and their chief executives specifically noted their use of Nvidia chips in earnings calls with analysts, although both CEOs said they were using in-house chips as well.
“We offer the most diverse selection of AI accelerators, including the latest from Nvidia, AMD [Advanced Micro Devices], as well as our own first-party silicon,” said Microsoft CEO Satya Nadella.
“We offer an industry-leading portfolio of Nvidia GPUs [graphics-processing units] along with our TPUs [tensor processing units],” Alphabet CEO Sundar Pichai said....
....MUCH MORE
And a reminder, MSFT, META and the GOOG all have their own chips either being produced - usually by TSMC - or in development. On the other hand:
Nvidia's Jensen Huang: “even when the competitors’ chips are free, it’s not cheap enough.” (NVDA)
The chips being praised are the current state of the art H100's, the Blackwell's won't ship until later this year or, I think it was in META's case, not until early 2025.
On the Tesla conference call Mr. Musk said they had 35,000 H100's, worth a cool billion at retail, and would end the year at 85,000 of the tiny treasures.
We looked back at some of the Tesla - Nvidia history in the outro of a 2023 post:
NVIDIA Partner Tesla Reportedly Developing Chip With AMD (TSLA; NVDA; AMD)
"During a talk at a private party, Elon Musk said Tesla is developing specialized AI hardware "'That we think will be the best in the world;" (TSLA)
Today in leveraged WTFs...."Tesla says it’s dumping Nvidia chips for a homebrew alternative" (TSLA)
The only reason for Tesla to do this is that NVIDIA's chips are general purpose whereas specialized chips are making inroads in stuff like crypto mining (ASICs), Google's Tensor Processing Units (TPUs) for machine learning and Facebook's hardware efforts.Watch Out NVIDIA: "Google Details Tensor Chip Powers" (GOOG; NVDA)
We've said NVIDIA probably has a couple year head start but this bears watching, so to speak....Culminating in August 2018's
"Nvidia CEO is 'more than happy to help' if Tesla's A.I. chip doesn't pan out" (NVDA; TSLA)
NVDA is up $43.96 (+5.32%) at $870.28 while TSLA might make it four green days in a row, currently at $171.50, up $1.32 (+0.78%) although it seems extended, up 23% from Monday's $138.80 low print.
