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Nvidia shares have nearly tripled in value this year, adding more than $700 billion to the company's market valuation and making it the first trillion-dollar chip firm. If Nvidia shows weakness, we could be in for quite a substantial correction in the market." Nvidia has only forecast revenue below estimates once in the past two years. Citi analysts said last week they were only modeling a revenue forecast of around $12 billion, but buy-side expectations have gone up to $14 billion. AMD expects to start shipping the chip in the fourth quarter and could control roughly 10% of the AI chip market next year, analysts said.
Persons: Ann Wang, Inge Heydorn, Heydorn, Piper, Harsh Kumar, doesn't overcharge, Kumar, Chavi Mehta, Aditya Soni, Anil D'Silva Organizations: REUTERS, Nvidia, Big Tech, GP, AMD, Citi, Google, Reuters, Thomson Locations: Taipei, Taiwan, China, Bengaluru
Arm is a British tech company that architects power-sipping microchips for phones and tablets and licenses them to CPU makers, including Apple and Samsung. Softbank tried to offload Arm to Nvidia for $40 billion, in what would have been the biggest chip deal of all time. But global antitrust regulators put a stop to it, and the deal fell apart in February 2022. Softbank CEO Masayoshi Son has touted Arm as an AI company that could have “exponential growth.” He promised ChatGPT-like services would eventually be offered on Arm-designed machines. But Arm said it does not make AI chips and is not a direct competitor to Nvidia and others that make chips that are purpose-built for AI.
Persons: New York CNN —, Japan’s Softbank, Softbank, Masayoshi Son, , Arm, Organizations: New, New York CNN, Apple, Samsung, Nvidia, Reuters, Saudi Vision Fund, Financial Times Locations: New York, British
The various bundles are now as annoyingly confusing as cable, and cost basically the same. The Financial Times recently reported that a basket of the top US streaming services will cost $87 this fall, compared with $73 a year ago. Cloud promises are being brokenFinally, there's the cloud, which promised cheaper and more secure computing for companies. In the roughly five years since going public, the company has spent about $3 billion on cloud services from Google and AWS. So, cloud services connected to the internet are great for everyone, except Google?
Persons: we're, Uber, Lyft, Steven Levy, Dara Khosrowshahi, Khosrowshahi, Slack, Andreessen Horowitz Organizations: Morning, Netflix, Disney, Wall Street, Paramount, Showtime, Financial Times, Tacoma International, Microsoft, Google, CNBC Locations: New York City, Seattle
According to LinkedIn, Singapore has the highest "diffusion rate" of AI skills — where the share of members adding such skills to their profiles grew 20 times compared to January 2016. Workers in Singapore are the world's fastest when it comes to adopting artificial intelligence skills, according to LinkedIn's latest Future of Work report. Finland (16x), Ireland (15x), India (14x), and Canada (13x) round out the top five countries with the highest rates of AI skills diffusion, according to the report. Skills 'potentially augmentable' by AIIn 2022, the five fastest-growing AI-related skills added to member profiles were all ones "hinting at the emergence of generative AI," according to LinkedIn. Share of skills potentially augmentable by generative AI Software engineer: 96%Customer service rep: 76%Cashier: 59%Salesperson: 59%Teacher: 45%Event manager: 39% Just 3% of software engineers' skills need to be performed by humans.
Persons: Pooja Chhabria, Chatbot ChatGPT, Goldman Sachs, GAI, Chhabria Organizations: LinkedIn, Workers, CNBC, Big Tech, Google, Microsoft Locations: Singapore, Finland, Ireland, India, Canada, Asia, Pacific
"From our perspective, AI looks like a really big data problem," said Ben Golub, CEO of decentralized cloud storage company Storj. This startup is joined by legacy enterprises like Dell and IBM in tackling data storage efficiency for economic and environmental sustainability. For those that do go decentralized, Lewis says it's still important to maintain what he calls "centralized management of a decentralized architecture." IBM recently launched its Cloud Carbon Calculator, an AI-informed dashboard designed to give clients access to standards-based greenhouse gas emissions data and help manage their cloud carbon footprint. Which workloads are best suited for a decentralized data storage model?
Persons: Andriy Onufriyenko, Ben Golub, Arthur Lewis, Lewis, Golub, Dell, it's, Ermengarde Jabir, Jabir, Alan Peacock, Peacock Organizations: Dell, IBM, Dell Technologies, Infrastructure Solutions, IBM Cloud
Rosenblatt is calling out its favorite networking and semiconductor stocks as the "age of AI gold rush" kicks into high gear. That's creating an attractive setup for what Rosenblatt views as the "picks and shovels" in the networking and semiconductor industries. "Most large enterprises want to train and run large AI applications in the Cloud, but only a small portion of existing Cloud infrastructure can support it." Beyond the pure-play semiconductor names tied to AI, Rosenblatt is placing its bets on Coherent . Ambarella is another beneficiary of the growing need for to handle sophisticated AI models, down about 17% this year.
Persons: Rosenblatt, It's, Mike Genovese, Kevin Cassidy, — CNBC's Michael Bloom Organizations: AMD, Nvidia, Qualcomm, Rambus Locations: Ambarella
We are exiting our position in Halliburton (HAL) Friday, selling 1,400 shares at roughly $39.52 apiece. The extra cash raised from the Halliburton sale will set us up Monday to scoop up shares of those two names. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
Persons: Jim Cramer's, Jim, Halliburton —, we've, We've, Halliburton, DuPont, Stanley Black, Decker, Jim Cramer, Jamie Schwaberow Organizations: Halliburton, HAL, DuPont de Nemours, Oracle, DuPont, Coterra Energy, Natural Resources, West Texas, GE HealthCare, CNBC, Workers, Halliburton Co, Anadarko Petroleum Corp, Bloomberg, Getty Locations: Halliburton, oversold, Dacono , Colorado, U.S
In an up-and-down market since our July Monthly Meeting, we added two stocks to our portfolio: an industrial name and an emerging cloud play. The business software giant is emerging as a cloud infrastructure name that has really come on as of late. For years, Oracle lagged behind the likes of Amazon Web Services, Azure, and Google Cloud, but the company hit a turning point when it launched its second-generation cloud infrastructure offering, called Oracle Cloud Infrastructure Generation 2, or OCI Gen 2, in the summer of 2020. Total cloud revenue growth surged to 54%, with 45% growth for Cloud Applications and 76% growth for Cloud Infrastructure. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Jim Cramer, I'm, Ed Breen, DuPont, Rogers, Dupont, Jim Cramer's, Jim, Spencer Platt Organizations: Oracle, DuPont, Amazon Web Services, Google, Oracle Cloud Infrastructure, Nvidia, Cloud Infrastructure, Management, Microsoft, Federal Reserve, Rogers Corporation, CNBC, Traders, New York Stock Exchange, Getty Locations: China, DowDuPont, New York City
The logo of U.S. networks giant Cisco Systems is seen in front of their headquarters in Issy-les-Moulineaux, near Paris, France August 6, 2022. REUTES/Sarah Meyssonnier/file Acquire Licensing RightsAug 16 (Reuters) - Networking equipment maker Cisco Systems' (CSCO.O) CEO talked up market share wins and artificial intelligence (AI) opportunities, as he moved to allay fears over slowing growth after a disappointing annual revenue forecast. Cisco forecast full-year revenue to be between $57 billion and $58.20 billion, below the Refinitiv estimate of $58.38 billion. He also said the company was likely to be a leading supplier of the networking gear needed for AI workloads. Cisco expects adjusted earnings per share of $4.01 to $4.08 for the full year, compared with the estimate of $4.04.
Persons: REUTES, Sarah Meyssonnier, Chuck Robbins, Zaheer Kachwala, Shilpi Majumdar Organizations: Cisco Systems, Cisco, Microsoft, AT, Thomson Locations: Issy, Paris, France, Bengaluru
For a long time, as those three companies moved first and established large initial market shares in the cloud, Oracle looked like it was being left behind. But the turning point was when Oracle launched its second-generation cloud infrastructure offering, called Oracle Cloud Infrastructure Generation 2, or OCI Gen 2, in the summer of 2020. In the second quarter of fiscal 2023 (the three months ended November 2022), Total Cloud revenue grew 43%, with 40% growth for Cloud Applications and 53% growth for Cloud Infrastructure. In the third quarter of fiscal 2023 (the three months ended February 2023), Total Cloud revenue accelerated back to 45%, with 42% growth for Cloud Applications and 55% growth for Cloud Infrastructure. Total Cloud revenue growth surged to 54% again, with 45% growth for Cloud Applications and 76% growth for Cloud Infrastructure.
Persons: Jim Cramer's, Jim, it's, Larry Ellison, Oracle, Microsoft —, we're, Jim Cramer, Justin Sullivan Organizations: Oracle, ORCL, Nasdaq, Amazon Web Services, Google, Oracle Cloud Infrastructure, AWS, Nvidia, Cloud Infrastructure, Management, Microsoft, Charitable Trust, Club, APPLE, CNBC Locations: China, Redwood Shores , California
But for today's youngest workers, one big thing holding them back is guilt. Some 35% of Gen Z workers say they feel guilty not working when they're on vacation, versus the 29% U.S. average across age ranges. That's according to LinkedIn's latest Workforce Confidence Index, based on a survey of 9,461 U.S. professionals this summer. "Gen Z is very conscientious," Anders tells CNBC Make It. They may have different habits, such as dress code preferences or desires of the location where they work, "but from what we're seeing, Gen Z's commitment to delivering good work is as intense as any other generation."
Persons: they're, George Anders, LinkedIn's, Anders Organizations: CNBC Locations: U.S
Amazon can build on its already stellar year as revenue from its cloud business picks up steam once again, according to boutique equity research firm Redburn. The analyst cited the potential for Amazon Web Services — the company's cloud computing business — to see growth reignited after a slowdown. AWS holds leading market positions in areas such as databases, data warehouses, data lakes and machine learning, Haissl said. AWS reported 12% growth in the second quarter, surpassing analysts' forecast by 200 basis points, according to the note. Haissl also expects AWS revenue to grow by more than 20% and 30% in the third and fourth quarters of this year, respectively.
Persons: Alex Haissl, Haissl, Gartner, , Michael Bloom Organizations: Amazon Web, AWS, Amazon Locations: Thursday's, 2Q23
I was hired by McKinsey & Company as a business analystWhen I joined in 2016, my base salary was $80,000 plus an additional performance bonus. McKinsey provided a retirement program contribution of 7% of qualified compensation, and I also received a sign-on bonus of $5,000. The bonus was based on my performance after the first year, and it was calculated as a percentage of my base salary. Then in the following year, this bonus, combined with my base salary, was my new base for compensation. But I realized I was getting too used to this lifestyle, and I personally found myself losing humility and patience.
Persons: Angelina Lu, Lu, I'd, I've, you've, Aria Yang Organizations: McKinsey & Company, Service, McKinsey, Northwestern University, Northwestern, McKinsey — Locations: Wall, Silicon, client's, Chicago, Kenya
"No one is coming for Nvidia on AI, period, any time soon," Stifel analyst Ruben Roy told CNBC in an interview Wednesday. The new version of Grace Hopper primarily delivers improvements in memory capacity and bandwidth compared with the first-generation product. In practice, improving the memory capacity and bandwidth of the Grace Hopper Superchip should help AI applications run more efficiently and smoothly. Volume production of the improved Grace Hopper Superchip is expected in the second quarter of 2024, according to Nvidia. Open-source software Nvidia's closed-source CUDA software platform – along with a library of pre-trained AI models — has helped establish the company's AI dominance.
Persons: it's, Grace Hopper Superchip, Ruben Roy, Grace Hopper, ChatGPT, Roy, Hopper, Nvidia, Pat Gelsinger, Nvidia's, Omniverse, Jim Cramer, Nvidia hasn't, Jim, enabler —, Jim Cramer's, Jensen Huang, Walid Berrazeg Organizations: Nvidia, Club, Devices, CNBC, Microsoft, Bank of America, AMD, Nvidia DGX, Intel, BMW, Computer, Getty Locations: Taipei
Apple's latest M2-based 15-inch MacBook Air laptops haven't been out long. Shop this all-time low MacBook Air deal at AmazonDeal icon An icon in the shape of a lightning bolt. Lowest Price Apple MacBook Air 15-inch M2 (2023) You no longer need a $2,000 MacBook Pro to get a 15-inch display. The 15-inch MacBook Air (2023) stretches your viewing real estate and offers M2 power at a budget-friendly price. We'd wager most people will be happy with the 15-inch MacBook Air.
Persons: you've Organizations: MacBook, Amazon, Apple
As second-quarter earnings season winds down, RBC Capital Markets is looking back at some companies that experienced the biggest earnings surprises due to the latest technology trend transforming the globe. "Artificial Intelligence remains a key focus for many companies, with significant investments in AI technologies and services," wrote RBC analyst Jonathan Atkin. AI discussion dominated the earnings of companies across industries, including technology, with some companies posting strong quarterly surprises as a result of the trend. In its latest earnings, Amazon touted some of its AI plans, including custom AI chips and its Bedrock platform . Many Wall Street analysts have cheered the Facebook and Instagram parent's recent cost-cutting initiatives and AI investments, in addition to a rebound in its advertising business.
Persons: Jonathan Atkin, Wall, workloads, — CNBC's Michael Bloom Organizations: RBC Capital Markets, Nvidia, Apple, Microsoft, RBC, Amazon, Intel, Oracle
Apple's latest M2-based 15-inch MacBook Air laptops haven't been out long. Shop this all-time low MacBook Air deal at AmazonDeal icon An icon in the shape of a lightning bolt. Lowest Price Apple MacBook Air 15-inch M2 (2023) You no longer need a $2,000 MacBook Pro to get a 15-inch display. The 15-inch MacBook Air (2023) stretches your viewing real estate and offers M2 power at a budget-friendly price. We'd wager most people will be happy with the 15-inch MacBook Air.
Persons: you've Organizations: MacBook, Amazon, Apple
AMZN 1D mountain Amazon popped after strong earnings JPMorgan's Doug Anmuth reiterated an overweight rating on Amazon and raised his price target to $180 price target, implying roughly 40% upside from Thursday's $128.81 close. Anmuth said on Friday that the second-quarter results and third-quarter outlook will help lift shares higher, and also pointed to strength in Amazon Web Services. Goldman Sachs analyst Eric Sheridan also hiked his price target to $180 from $165, keeping his buy rating on the stock. Bank of America's Justin Post, meanwhile, raised his price target to $174 from $154, implying a 35% gain from Thursday's close. Morgan Stanley's Brian Nowak increased his price target on Amazon to $175 to $150 and reiterated his overweight rating.
Persons: Doug Anmuth, Anmuth, AMZN, Goldman Sachs, Eric Sheridan, Sheridan, headwinds, Bank of America's Justin Post, Citi's Ronald Josey, Josey, Morgan Stanley's Brian Nowak, Nowak, Michael Bloom Organizations: Wall, Amazon, Web Services, Bank of America's, Amazon Web Services, 3Q Locations: Thursday's
Amazon will report second-quarter earnings after the market close on Thursday. In the first quarter, AWS sales increased roughly 16%, the slowest growth since 2015, when Amazon began breaking out cloud revenue. AWS rivals Microsoft and Alphabet last week reported solid results in their cloud businesses, beating analysts' revenue expectations. Last week, Amazon hosted an AWS Summit, where the company announced updates related to generative AI, including a service that uses the technology to transcribe and summarize doctors' patient visits. Also during the quarter, Amazon hosted its annual Prime Day discount bonanza, which it touted as its "biggest ever."
Persons: Andy Jassy, it's, Brian Olsavsky, workloads Organizations: Amazon, Seattle, Refinitiv Revenue, Web, Services, Evercore, Microsoft, Apple, Meta Locations: Seattle, Israel
Amazon delighted investors on Thursday, posting earnings of 65 cents a share, blowing past estimates of 35 cents a share. In Jassy's prepared remarks at the start of Thursday's earnings call, cost cuts were one of his central themes. The broad-based changes under Jassy have left the company less dependent on its cloud business, Amazon Web Services, for profits. In the second quarter, Amazon was able to expand its overall margin while AWS's profit margin declined to 24.2% from 29% a year earlier. But at only 12% year-over-year growth, the cloud business is seeing its slowest expansion since Amazon began breaking out its revenue in 2015.
Persons: Andy Jassy, Jeff Bezos, he's, Bezos, Jassy, Jassy's, Amazon Organizations: New York Times, Amazon, North America, Amazon Web, AWS Locations: New York City, riskier, North, America
Wall Street was happy to see stabilizing growth at the company's cloud unit Amazon Web Services and an uptick in operating margins. With Amazon turning a corner on profitability and AWS revenue growth stable, we think the stock still has more room to run. There's been plenty of debate surrounding AWS lately, with analysts and investors questioning whether revenue growth would decelerate to the high single digits. In North America, second-quarter operating margins improved to 3.9%, compared with 1.2% in the first quarter and a loss of 0.8%) a year ago. Third quarter outlook Amazon followed up the strong second quarter with a very bullish view of the third.
Persons: There's, Andy Jassy, Amazon, Jim Cramer's, Jim Cramer, Jim, Sheldon Cooper Organizations: Club, Web Services, Revenue, Refinitiv, Rivian Automotive, Amazon Web Services, North, CNBC, Lightrocket, Getty Locations: North America
Amazon cloud revenue rise 12%, topping analysts' estimates
  + stars: | 2023-08-03 | by ( Jordan Novet | ) www.cnbc.com   time to read: +2 min
Amazon said Thursday that revenue from its cloud unit increased 12% year over year in the second quarter, a speedier pace than analysts had predicted. Revenue for the quarter came to $22.1 billion, beating the $21.79 billon consensus among analysts surveyed by StreetAccount. AWS operating income has now declined for three consecutive quarters. Google and Microsoft are also moving quickly to make money as companies look to take advantage of generative AI following the rise of startup OpenAI's ChatGPT chatbot. AWS CEO Adam Selipsky told CNBC in June that the generative AI "race" has just started.
Persons: Gartner, Adam Selipsky Organizations: Amazon, Revenue, StreetAccount, StreetAccount . Revenue, Amazon Web Services, AWS, Microsoft, Center, Google, OpenAI Service, CNBC Locations: StreetAccount .
Amazon to invest $7.2 bln in Israel, launches AWS cloud region
  + stars: | 2023-08-01 | by ( ) www.reuters.com   time to read: +1 min
Aug 1 (Reuters) - Amazon.com (AMZN.O) said on Tuesday it is planning to invest about $7.2 billion through 2037 in Israel, and launched its Amazon Web Services (AWS) data centers in the country. Amazon's cloud services in the region will allow the country's government to run applications and store data in data centers located in Israel. AWS is Amazon's cloud computing platform, used by companies such as Netflix (NFLX.O), General Electric (GE.N) and Sony (6758.T), enabling storage, networking and remote security. With the expansion, AWS will be available in 32 geographic regions, the company said, adding that its investment in Israel will contribute about $13.9 billion to Israel's gross domestic product. Reporting by Zaheer Kachwala in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.
Persons: Yali Rothenberg, Zaheer Kachwala, Krishna Chandra Organizations: Web Services, Netflix, General Electric, Sony, Thomson Locations: Israel, Bengaluru
July 31 (Reuters) - Arista Networks (ANET.N) forecast quarterly revenue above estimates after delivering better-than-expected results on Monday, supported by higher demand for its cloud networking gear following a boom in artificial intelligence (AI) applications. The third-quarter forecast underscores robust demand from customers including Microsoft (MSFT.O) and Meta Platforms (META.O) as they snap up Arista's latest 7800 series of switches designed to support AI workloads. Both Microsoft and Meta said last week they would continue investing in data center infrastructure, including networking equipment, to support functionality centered on AI. Arista sees third-quarter revenue in the range $1.45 billion to $1.5 billion, higher than analysts' estimate of $1.39 billion, according to Refinitiv data. In the second quarter ended June 30, its revenue rose 39% to $1.46 billion, beating expectations of $1.38 billion.
Persons: Meta, Akshita Toshniwal, Yuvraj Malik, Devika Organizations: Arista Networks, Microsoft, Arista, Thomson Locations: Santa Clara , California, Bengaluru
"But when we go to an AI server, Intel's contribution drops to low-single digit percent, and that's where Nvidia's contribution gets to almost 60%, 70% of the price of the server." Still, it's possible AMD also saw softer demand for its data-center CPUs in the last quarter due to ramped-up AI spending. Like Intel, AMD is also working to bring its own AI-focused chips to market . Yes, Nvidia stock has had a monster run, more than tripling year-to-date, but the fundamental reason for that outperformance — its AI dominance — is completely intact. It remains an "own it, don't trade" stock, alongside Apple (AAPL).
Persons: Pat Gelsinger, , Vivek Arya, Arya, Intel's, Lisa Su's, Gelsinger, AMD's, Jim Cramer's, Jim Cramer, Jim, Hsun Huang, Patrick T Organizations: Intel, Nvidia, Club, — Club, Microsoft, CNBC, Bank of America, Devices, AMD, Apple, Nvidia Corp, Mobile, Fallon, Bloomberg, Getty Locations: China, Los Angeles , California, U.S
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