Shovel sellers always get richer. The gold rush in the XIXᵉ century saw hundreds of thousands of poor wretches head for new lands that supposedly harbored so much gold, all you had to do was stoop down and fill up baskets full of it.
In reality, most of them didn’t make their fortune and died, decimated by disease and unhealthy living conditions. But in the midst of all this frenzy, a few clever souls were able to ride the wave and enrich themselves outrageously. These include merchants who supplied all the equipment necessary for prospecting. Among them were the now legendary shovel salesmen.
In new technologies, it’s much the same. Those who develop software, set up startups or invest money are exposed to a thousand risks, while those who invest are exposed to a thousand risks. who manufacture chips win on all fronts. Today, we focus on results of the third quarter from the largest shovel maker in the artificial intelligence sector: Nvidia and its indispensable GPUs.
An explosion in Nvidia’s financial results…
L’artificial intelligence (AI) is currently generating tremendous enthusiasm among the media, governments, the general public and investors. But while ethical and political debates are tearing apart increasingly polarized social networks, large companies, such as Microsoft and even Googleare making progress in their research. And to keep all these power-hungry applications running computing powerthis little world is in dire need of graphic processors (GPUs) that Nvidia sells to them, rubbing their hands.
The demand for AI-related chips is such that the financial results of the world leader in this sector are clearly up. Nvidia has surprised the world at the earnings calls Q2 2023 with figures firmly in the green. Sales came to 13.51 billion dollarswith an increase of 88 % compared with the first quarter, and 101 % compared with last year. The data centers is even increasing by 141 % compared with Q1, and 171 % compared with Q2 2022. 171 % all the same!
As for the outlook, it’s enough to put a smile on the faces of the company’s management and shareholders, who have definitely chosen the right horse in the AI race. Remember the story of the shovel salesmen!
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… but also many AI-related cryptocurrencies
In his report quarterly, Nvidia details the various sectors benefiting from the interest in new technologies, such as video games, smart cars and business services. However, giant data centers linked to theAI outrageously dominate the debates. We are indeed witnessing a paradigm shift.
Historically, the most important element of a computer system was the central processing unit (CPU). But with the advent of AI applications, it’s the computing power which attracts a great deal of attention and becomes predominant. Jensen HuangNvidia’s founder and CEO, confirms this small computer revolution:
« The data centers of the past, which were largely made up of processors for file retrieval, will in future be used for generative data. So instead of millions of processors, you’ll have far fewer. But each one will be connected to millions of GPUs. »
This is why AMD and Intel, the two big CPU manufacturers, are marking time, while Nvidia is soaring. But the status quo, so profitable for the Santa Clara-based company, cannot last much longer, and the competition is already organizing to come and take market share to this undisputed leader.
But back to AI and a consequence of this good economic news, namely the increase in cryptocurrency prices closely – or remotely – linked to this buoyant sector. Tokens such as Fetch.ai (FET), The Graph (GRT), Injective (INJ)Render (RNDR) and SingularityNET (AGIX) all reacted favorably to Nvidia’s positive results.
While shovel sellers make money, some gold miners end up finding a few nuggets at the bottom of their digital beater! More surprisingly, it may even be that Bitcoin benefits from this new worldwhere AI will have a prominent place in our lives.
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