Alphabet Inc.'s former CEO and Chair Eric Schmidt on Tuesday pointed to Nvidia Corporation (NASDAQ:NVDA) as a significant player in the AI market. The original video of his conversation posted by Stanford University, has now been deleted.
What Happened: Schmidt, who led Google from 2001 to 2011, noted that large tech companies are planning substantial investments in Nvidia-based AI data centers, potentially costing up to $300 billion.
"I'm talking to the big companies, and the big companies are telling me they need $20 billion, $50 billion, $100 billion — very very hard," Schmidt said, adding that a significant portion of this spending was going to Nvidia.
Schmidt went on to suggest that Nvidia is currently leading the market. "If $300 billion is all going to Nvidia, you know what to do in the stock market," he said, immediately adding, "That's not a stock recommendation."
"If $300 billions is all going to Nvidia, you know what to do in the stock market" – Eric Schmidt$NVDA pic.twitter.com/K0pKdyzyve
— The AI Investor (@The_AI_Investor) August 14, 2024
The news was first reported by CNBC.
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Why It Matters: Schmidt's comments come as Nvidia prepares to provide its latest market update when it reports quarterly results on Aug. 28.
According to Dan Ives, an analyst at Wedbush Securities, the earnings call will capture the attention of investors globally, as they await insights from Nvidia CEO Jensen Huang on the future demand for AI chips through 2025.
During the conversation at Stanford, Schmidt also blamed Google's focus on work-life balance and remote work for its loss to AI startups like ChatGPT-maker OpenAI.
The former CEO has since retracted his statement about remote work saying, "I misspoke about Google and their work hours."
Price Action: During the regular session on Thursday, Nvidia's stock closed at $122.86, with a significant 4.05% surge for the day. In after-hours trading, the stock saw a further increase of 0.073%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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