The artificial intelligence (AI) industry is capturing headlines once again across the globe. With shining predictions about the future of these innovative technologies resounding from every corner, traders may want to keep up-to-date on what business leaders have to say about coming developments in the AI space.
NVIDIA Exec Speaks Out
At Tuesday’s Goldman Sachs (GS) Communacopia and Tech Conference, an investment banking confab featuring some of the biggest names in tech and media, NVIDIA (NVDA) executive and head of enterprise computing, Manuvir Das, presented compelling insights into the burgeoning AI market. He projected that the long-term market for AI could grow to encompass three key sectors, totaling $600 billion: $150 billion for generative AI software, $150 billion for omniverse enterprise software, and $300 billion for chips and systems. These figures culminate in a colossal opportunity for firms in the AI market, closely associated with NVIDIA's concept of ‘accelerated computing,’ which makes computer applications more efficient by separating data-intensive processes from control functionality.
According to Das, NVIDIA's Vice President of Enterprise Computing, the significance of this market opportunity extends beyond hardware, emphasizing the importance of the entire AI ecosystem. He underlined that the industry is still in diapers when it comes to accelerated computing, suggesting that traditional computing systems have merely changed in location, with operations shifting to cloud computing and mobile devices while retaining the same basic computing style. However, as companies increasingly rely on computing, the demand for data centers, energy, and processing power has become unsustainable.
NVIDIA is strategically positioned to capitalize on this inevitability. Das noted that through accelerated computing, NVIDIA aims to achieve significantly more work with the same physical footprint, potentially increasing efficiency by factors like 10 or even 100 times.
NVIDIA's stock performance attests to investor confidence in this vision. The company's stock has surged by an impressive 232% so far in 2023. This remarkable growth is fueled by outstanding earnings and NVIDIA's leading role in the AI sector. Das emphasized that NVIDIA's success is the culmination of a long-term strategy and commitment, spanning decades. NVIDIA seems to be in a good position to take full advantage of the opportunities offered by the changing landscape of the technology sector, but time will tell whether Das’ predictions will be borne out. (Source:Yahoo Finance)
AMD CEO Shares POV
At another session of the same conference on Tuesday, AMD (AMD) CEO Lisa Su expressed confidence in the consumer interest surrounding artificial intelligence semiconductors. She emphasized that AI is the firm’s foremost priority, with a significant increase in AI-related engagements in the data center over the past month. Su went so far as to describe the market for AI as "skyrocketing."
Su highlighted that AMD offers a comprehensive AI technology portfolio, spanning both the hardware and software sides of the industry, which positions the company as a key player in the AI semiconductor market. She also stressed the robust state of AMD's supply chains, which enable them to retain the production capacity necessary to keep the wheels turning.
Furthermore, Su repeated expectations that the market for AI accelerators in data centers will reach $150 billion over the next four years and confirmed the upcoming launch of AMD's MI300 AI accelerator, to take place in Q4.
AMD stock has seen an over 70% jump since the top of the year, reflecting the company's commitment to AI technology and its potential for continued growth in the market. However, as is the case for NVIDIA and other firms in the AI sector, the future is as yet unknown. C3.ai (AI) is set to release earnings today as well, so investors and traders alike should keep their eyes peeled for exciting and unforeseen developments in this fast-changing sector of the global economy.