Amazon, Alphabet caught Microsoft’s AI lead: Analyst
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- เผยแพร่เมื่อ 23 ก.ย. 2024
- Microsoft was among the hot stocks on Yahoo Finance's Trending Tickers page after D.A. Davidson downgraded the tech giant. D.A. Davidson managing director Gil Luria joins Madison Mills and Seana Smith on Catalysts to discuss artificial intelligence (AI) competition among big tech companies. Luria tells Yahoo Finance that Microsoft (MSFT) "had a big head start because they were involved with OpenAI for a long time. They knew ChatGPT was coming before everybody else. They knew that they were going to commercialize it. So about a year and a half ago, they came out with a whole set of commercial products around AI that gave them a big lead over Amazon (AMZN) and Google (GOOGL, GOOG) who were both caught flat-footed.” “Since then, Amazon and Google, [Amazon Web Services (AWS)] and [Google Cloud Platform (GCP)], respectively, have invested in catching up to Microsoft, and we think that you can start telling that they've caught up, both in terms of the results they've reported and the conversations we're having with industry participants tell us that their capabilities are now comparable to Azure's, thus diminishing the lead.” “Going forward, we think AWS and GCP have an advantage over Azure because they have the capability to deploy their own chips into their data centers, which are a fraction of the cost of an Nvidia GPU, something that Microsoft has yet to do with its own chips.” He says, “Microsoft is so reliant on Nvidia that it's almost transferring wealth from its own shareholders to Nvidia's (NVDA) shareholders. Their over-investment right now creates a point of margin headwind every year they over-invest, meaning Microsoft has to lay off 10,000 people just to keep its margins flat because of how much it's over-investing in building this infrastructure, using the most expensive chips, which are Nvidia GPUs.” “I'd say we're just at a point where they both [Nvidia and Microsoft] can't both win. Either Microsoft continues to over-invest in Nvidia GPUs, in which case Nvidia wins, but Microsoft has diminishing margins, or it slows down that rate of investment.” He says “the cooling down of investment” could lead him to change his view on Microsoft. “If they go back to a steady state of investment and expand data centers, but not at this exponential rate, that would take away that margin and headwind and position Microsoft for much faster earnings growth... if Microsoft actually cools off its investment, margins will grow, and they won't really sacrifice any revenue growth.”
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The people who know what is going on in AI are under NDA. Too many people talking out of their hats and parroting information that may or may not be correct. The market is so large, the players so wealthy, that news today will be irrelevant tomorrow.
Gil made a NVDA price target in the $60’s (split adjusted) in March 2024.
A total of how many analysts have downgraded. What do I care about one analyst? How many are calling Msft a buy? This news is garbage w/o all the info.
You are learning the game. You need to listen to everything to be good.
I thought google was ahead, in that they’d invented transformers: just they were training and building other things apart from chat. Google have likely been wondering how it monetise it for a while.
google always have tons of good ideas but then they barely ever get commercialized. Beside Google search engine with ads revenue you don't see that many tangible goods like google home and stuff.
Pfffff are these "analysts" aware that openAI is basically microsofts AI department? "Closed the lead", wow they have absolutely no idea what's coming this winter. Just makes it obvious that people interested in AI have a way better overview of whats going on than some random finance boomers...
This is wrong. Now apple and nvidia also invested in openai.
This is just a bubble. When microsoft gave up windows phone, they just lost the AI war today. Nobody uses microsoft's ai product. NONE
@@coshvjicujmlqef6047 The pie has not been baked yet. Talks about investing are not the same as investing. No checks have been written yet by Apple AFAIK. Currently, Apple gets OpenAI for FREE. At the same time Apple is talking with OpenAI, they are also talking with Google.
How is Amazon going to power AI... Microsoft has now secured energy for future generations to power it's growth.
Clearly this guy doesn't use CHAT GPT or other AI's. He saying other techs caught up.. how so.. Chat GPT is away far ahead of other AI. I am a programmer I ask same questions to all AI and by far Chat GPT provides best answer.
I also work in AI and it depends on what questions you ask, how the questions are formatted, and accompanying data. Currently, applications are behind the models and are not yet able to take advantage.
This guy sucks, check his price forecast about NVDA.