Nvidia (NVDA) experienced another impressive quarter — topping fourth quarter revenue and earnings estimates — largely driven by a handful of key customers.
A significant portion of its success has been tied to cloud service hyperscalers. WestEnd Capital Management senior equity analyst Ali Mogharabi joins Market Domination Overtime’s Julie Hyman and Josh Lipton to discuss the current state of Nvidia’s demand in the AI data center landscape.
“In terms of the overall spending cycle, I think we’re still far from the peak,” Mogharabi says. “However, you know, based on the Q4 numbers and also on the guidance, it seems like the demand for Blackwell [GPUs], their latest one, is very, very strong — and one can only assume that actually is coming from the hyperscalers.”
When asked about the competitive risk from Nvidia’s own customers, Mogharabi states, “that’s how we’re seeing it, especially with with two of the hyperscalers: Alphabet’s (GOOG, GOOGL), the Google Cloud, and also Amazon (AMZN), the AWS. They have actually been utilizing their own chips, their in-house chips for a long time, especially Google.”
Additionally, Mogharabi speaks on artificial intelligence advancements tying into customized chips. “At the same time, I do think that demand for more customized chips could actually increase, but you still need all of that computing power for a few reasons, right?” Mogharabi believes “as inference continues to improve, the application of all of this AI technology widens.”
Watch Yahoo Finance’s full Nvidia earnings special here https://youtube.com/live/IpMF1dFdO0A
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