San Francisco – Artificial intelligence Bellwether NVIDIA is about to publish a quarterly report that is planned, give better sense, namely whether the stock market has led to an over-type bubble or if it is propelled by a technological boom which is still gaining momentum.
The financial results that were to be released on Wednesday afternoon have become a key barometer of the AI in the past two years, because Nvidia has made most of the chips that supply technology in large dispersed data centers throughout the boom. Nvidia has become the first listed company to exceed a market value of $ 4 billions Last month, and its scholarship price earned another 13% since when creating an additional $ 500 billion in shareholders wealth.
The point of view of this summer continued to increase the Nvidia jaw compared to the beginning of 2023, when the market value of the company oscillated about $ 400 billion, shortly after the end of the end of the end of the OPENAI of its chatbot Chatgpt triggered the largest enthusiasm of the technology since Apple published the first iPhone in 2007.
Although the technological industry was the largest beneficiary of the IA frenzy, it was also a boon for the global stock market. The reference S&P 500 has won 68% since the end of 2022, with an AI fervor supplied largely with the optimism of investors.
But even in the middle of the general euphoria, there have recently been whispers on the question of knowing if Ai Mania will prove to be an echo of the dot-com boom of the late 1990s which led to an atrocious stock market in 2000 which finally led the American economy and plunged the Silicon Valley again in a funk which lasts several years before the technological industry does not go back to prosper.
Investors have recently been frightened by a combination MIT report That said, 95% of AI pilots fail and comments from the CEO of Openai Sam Altman floating the idea that The artificial intelligence market is in a bubble.
And by certain measures, the share of the AI technological companies seem to be sparkling. For example, Nvidia is negotiating its future profits at around 40 times, almost double the rate that investors traditionally believe a reasonable level. Meanwhile, Microsoft’s market value, another AI leader, oscillates just below 4 dollars of dollars, while the values of other Amazon colleagues, Facebook Parent Meta and Google Parent Alphabet currently vary from 1.9 Billion of dollars to 2.5 billion dollars.
NVIDIA should display another robust growth quarter for the May-July period for its exercise. Analysts interviewed by Factst Research predict Nvidia will earn $ 1.01 per share, excluding certain elements unrelated to its current activity, which would represent an increase of 49% compared to the same era last year. Analysts provided that Nvidia’s revenues would increase 53% compared to a year ago to around 46 billion dollars.
These gains reflect the financial tsunami which floods the AI market, because the largest players spend greatly to build and develop the data centers necessary to fuel technology. Microsoft, Amazon, Alphabet and Meta Budra collectively more than $ 325 billion for AI investments this year. With its dominant position on the AI fleas market, Nvidia collects the advantages of this intense demand.
Despite this, the trajectory of Nvidia’s growth collapsed. If the projections of analysts take place, the growth of NVIDIA income for its last quarter will be significantly lower than the 122% increase it published during the same period last year.
And Nvidia has also lost business due to President Donald Trump’s trade war with China. Following a ban on its AI fleas sales in China, which resulted in $ 4.5 billion to its finances During his first tax quarterNvidia said the restrictions would cost him about $ 8 billion in sales in the last quarter.
Trump removed the Chinese handcuffs from Nvidia earlier this month in exchange for A 15% drop in business sales in this country – A CEO of compromise Jensen Huang should discuss with analysts while sharing his point of view on the state of the AI market on a call with investors.
