Here are the key takeaways:
* Nvidia faces competition in the AI market from other companies like Meta, Amazon, and Intel.
* The rise of “batch processing” allows businesses to access AI models more cheaply by running queries during periods of low demand.
* Smaller companies like Groq and Etched are offering specialized products that can’t be matched by Nvidia head-to-head.
* To hit the next milestone, Nvidia needs not only to hold its own against competitors but also to thrive in a market where fundamentals are out of fashion.
* The company’s profit margin may be harder to defend due to supply chain bottlenecks and limited foundry capacity.
* Some analysts see a bear case for Nvidia’s stock price, predicting that demand will eventually slow down and orders will be cancelled.
* Others view AI as a potential catalyst for a fourth Industrial Revolution, which could have significant economic implications.