From Nasdaq: 2024-04-30 04:00:00

Four of the biggest tech companies – Tesla, Meta Platforms, Microsoft, and Alphabet – report strong demand for AI applications, benefiting Nvidia. Tesla plans to increase its Nvidia chips by 140% for its upcoming robotaxi. Meta Platforms plans to increase capital expenditures to become the leading AI company, investing heavily in Nvidia’s chips. Microsoft plans to increase spending to meet growing AI demand and develop its own AI using OpenAI’s GPT model. Alphabet is already spending big on adding capacity to Google Cloud and training advanced AI models, using its own chip designs but still committing spending to Nvidia. This AI arms race has boosted Nvidia’s pricing power and gross margin. While Nvidia could benefit in the next few years from increased spending on AI, competition from big tech companies developing their own chip designs may pose a challenge in the long run. Shares of Nvidia are trading at a forward price-earnings ratio of 35.



Read more at Nasdaq: Tesla, Meta, Microsoft, and Alphabet All Just Shared Magnificent News for Nvidia Investors