Nvidia Earnings: The Era of A.I. Chips And Generative A.I. Demand

🚀 Musings on Nvidia's Earnings Beat

Image: Nvidia's HQ has been designed to enhance productivity.

Hey Everyone,

If you are going to summarize what has occured 2023 in A.I., Nvidia’s performance really is the center of where the action is.

Just to illustrate the surprising year we’ve had in Generative A.I. euphoria, I think the best reflection of this is actually Nvidia’s recent Q3 Earnings.

While OpenAI has 1 Billion or so revenue, it’s very far from being profitable, while Nvidia is now part of the magnificent seven, entering a unique pantheon of companies with unprecedented power in the future of technology.

While recently Sam Altman has been a huge distraction, Anthropic’s Claude 2.1 release and Nvidia’s earnings shows you just how misplaced that hype is. OpenAI or ChatGPT are from the center of the gold-rush of LLMs in reality.

Nvidia reported Tuesday November 21st, 2023 blowout third-quarter (Q3) results and offered stronger Q4 guidance as AI-led chip demand bolstered growth in its high-margin data center business. 

Nvidia’s stock before today’s open is up 249% for 2023 so far, NVDA 0.00%↑ which is unprecedented for a company worth over $1 Trillion dollars. Tech execs have voiced concern that the development of artificial intelligence is concentrated in the hands of too few companies and Nvidia’s sudden unworldly success is a case in point.

Jensen Huang, CEO of Nvidia’s personal wealth is a case in point. Worth roughly $14 billion at the start of 2023, Huang is now worth nearly $44 billion thanks to his ownership of many Nvidia shares, and he is now the world's 27th richest person.

Let’s break down some of Nvidia’s earnings numbers to get a better idea of what has transpired for this company in 2023.

Nvidia’s market cap is 1.234 T. (Trillion) as of late November, 2023, and the stock is nearly $500. Nobody could have predicted that at the beginning of the year or even last year. Nvidia is by far the most important company right now in A.I.

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