Nvidia’s Earnings Don’t Matter. Future AI Chip Supply Is Everything.

Nearly everyone realizes demand for the company’s artificial intelligence chips will likely outstrip supply for a while. The critical question for investors when Nvidia reports earnings results after Wednesday’s close is not what to make of the near-term situation, but whether or not the company can show progress in alleviating its supply constraints over the longer term.

Nvidia dominates the market for producing chips used for AI projects, making it the primary beneficiary of the generative AI trend. This type of technology is used by chatbots, among them OpenAI’s ChatGPT—which unleashed a wave of excitement after it was released late last year. Many analysts have said the current limitation on Nvidia’s revenue is advanced chip-packaging capacity at semiconductor foundries—and not demand.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Baidu Earnings: BIDU rises 4% following 43% increase in adjusted earningsBaidu (BIDU) stock surged in Tuesday’s premarket following the Chinese search giant’s release of a major earnings beat for the quarter ending June 30
Source: FXStreetNews - 🏆 14. / 72 Read more »

Palo Alto Networks shares surge after earnings, Napco Security tumbles and more stocks on the movePalo Alto Networks, Napco Security, Tesla and Jet.AI were among the biggest moving stocks ahead of Monday's open.
Source: MarketWatch - 🏆 3. / 97 Read more »

Nvidia earnings will be major test for AI demand, market rally By ReutersNvidia earnings will be major test for AI demand, market rally
Source: Investingcom - 🏆 450. / 53 Read more »

HSBC hikes Nvidia price target ahead of earnings, sees 80% upsideAnalyst Frank Lee raised his target price on the stock to $780 from $600.
Source: CNBC - 🏆 12. / 72 Read more »

Palo Alto Networks shares surge after earnings, Tesla climbs and more stocks on the movePalo Alto Networks, Napco Security, Tesla and Jet.AI were among the biggest moving stocks ahead of Monday's open.
Source: MarketWatch - 🏆 3. / 97 Read more »

Nvidia's stock looks to snap losing streak as earnings optimism buildsNvidia Corp.'s earnings are drawing nearer, and yet another analyst is feeling upbeat heading into the upcoming report.
Source: MarketWatch - 🏆 3. / 97 Read more »