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The thrill of AI is fading – and Wall Street is getting clear-eyed about value
The world’s leading AI chip producer, Nvidia, just delivered a slam dunk earnings report that most businesses would be jealous of. Sales rose 122% in the second quarter. Profits doubled. The outlook for the current quarter? Strong.
Given Nvidia’s centrality in the AI narrative, its quarterly earnings reports have taken on a Super Bowl-like quality of their own, spawning their own watch parties and memes and endless feverish commentary. As Nvidia CEO Jensen Huang noted during a call with analysts Wednesday, the company’s chips don’t just power AI chatbots but also ad-targeting systems, search engines, robotics and recommendation algorithms. The potential bad news: Nvidia makes hardware that is mindbogglingly complicated and hard to replicate, which is why even the biggest names in tech, including Google and Amazon, rely on it.
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