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Nvidia: Analyst compares AI boom with beginnings of the Internet

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Nvidia: Analyst compares AI boom with beginnings of the Internet

One analyst believes Nvidia is leading the AI ​​revolution in what appears to be a “1995 moment.” Vincent Thian/AP

The development of artificial intelligence appears to be similar to the commercialization of the Internet in the mid-90s.

One analyst described the current AI boom as a “1995 moment” that will last for years to come.

Nvidia is leading the charge as major tech companies vie for its graphics processors for their AI.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

Artificial intelligence is experiencing a boom like the Internet did in the 1990s – and one analyst says Nvidia is leading the way.

“This is a 1995 moment, as the AI ​​revolution and $1 trillion in additional spending over the next decade will impact the software ecosystem and “hit the rest of the tech sector,” wrote Dan Ives, a tech analyst at Wedbush Securities, in a recent analyst note.

In 1995, the Internet became commercially available – and changed the world.

Ives believes we may be at a similar tipping point in AI investments. In his opinion, Nvidia benefits from this by producing sought-after graphics processing units (GPUs) that companies use to power their AI models such as Chat GPT from OpenAI.

Analyst: “Beginning of the spending wave, not the end.”

“Nvidia and the gold GPUs are the beginning of the spending wave, not the end,” Ives said in the note. “Now Wall Street is waiting for a variety of use cases to be developed across the enterprise and consumer ecosystem.”

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The analyst said the hunger for Nvidia’s AI chips among leading software vendors such as Salesforce, Adobe and Oracle is a “shattering technology trend that we haven’t seen since the dawn of the Internet in the mid-90s.” But that doesn’t mean that large amounts of AI spending will lead to a stock market crash similar to the tech route of the late 90s.

Ives noted that current tech stocks are “not nearly as high as they were in 1999-2000,” when the dot-com bubble burst. That era – which he said was fueled by speculative investing and the overvaluation of Internet companies – took place in a “completely different world than we see today.”

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The AI ​​pioneer Nvidia has big plans

“The AI ​​revolution begins with Nvidia, and in our opinion the AI ​​party is just getting started,” said Ives.

This trend was reflected in Nvidia’s fourth-quarter results, which beat estimates. The company posted sales of $22.1 billion (around €20.5 billion) in the fourth quarter, proving that the AI ​​boom has not yet subsided.

Ives and Nvidia did not immediately respond to Business Insider’s request for comment.

Jensen Huang – the CEO and co-founder of Nvidia, nicknamed the “Godfather of AI” – told investors at the company’s most recent earnings call that new AI data centers… “This will open up a whole new world of applications that are not yet possible today.”

“We started the AI ​​journey with the hyperscale cloud providers and Internet companies,†said Huang. “Now every industry is on board. From automotive to healthcare, financial services and industrials to telecommunications, media and entertainment.“

It should only be a matter of time before companies from all sectors rely on AI on a large scale. At the annual press conference, Huang predicted that “every company in the world” would one day run on Nvidia’s GPUs. In his opinion, this will become “a very important business over time”.

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“We’re really just getting started,” Huang said.

Read the original article Business Insider.

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