Did Nvidia benefit from the "AI showdown" between Microsoft and Google?

Google and Microsoft announced their earnings reports this week. Both companies revealed plans for significant investments in artificial intelligence (AI) over the next year. As a result, analysts are looking into Nvidia's future revenue prospects.Positive attitude is being demonstrated.

"Remarks on capital expenditures and AI spending suggest that our financial estimates for Nvidia may be too conservative," noted Jeffrey's Securities analyst Mark Lipacis. According to him, the reasons for being optimistic about Nvidia's future earningsare as follows:

- Ruth Porat, the Chief Financial Officer (CFO) of Google, stated during the earnings call that the company will continue to invest in high-level cloud data centers for the remaining period of this year, expecting sustainable growth until 2024. She emphasized the need to increase investment to support the opportunities seen in AI.

- Satya Nadella, the Chief Executive Officer (CEO) of Microsoft, emphasized the importance of speed in monetizing AI during the earnings call held on the 25th, stating that they aim to lead AI platforms at every layer.

- According to Microsoft's latest report, Amy Hood, the Chief Financial Officer (CFO), plans to accelerate investments in the cloud to meet the demand for AI platforms. They anticipate that capital investments will increase on a quarterly basis throughout the fiscal year to respond to demand signals. The main targets for capital investment are data centers, CPU chips, GPU chips, and network equipment.

- The latest investment plans from Microsoft and Google are evidence of the tech giants leading the AI infrastructure transformation, which is considered a significant positive factor for Nvidia.

- According to BofA, Nvidia holds approximately 75% of the AI semiconductor market share. On the other hand, only 10% of the world's cloud servers are equipped with chips suitable for AI projects.- Nvidia's stock price hasincreased by approximately 75%.In contrast, only 10% of the world's cloud servers are equipped with chips suitable for AI projects.- Nvidia's stock price has increased by approximately 75%. However, only 10% of the world's cloud servers are equipped with chips suitable for AI projects.

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