Nvidia's AI Dominance Unchallenged Setting a New Course for Tech

Savvy Sails and Swashbuckling Revenue

Well blow me down. Seems our friends at Nvidia are at it again racking up more gold doubloons than a pirate could plunder in a lifetime. Eleven straight quarters of growth exceeding 55%. That's more consistent than my moral compass which admittedly isn't saying much. They're the most valuable public company they say. Makes one wonder if they're using Kraken ink to print money these days.

Charting a Course for AI Domination

This here growth they claim is re accelerating. This quarter they expect a surge of about 77% in revenue totaling roughly $78 billion. 'Faster than any period since January 2025,' they squawk. It seems to me that this AI business is like finding Isla de Muerta – a treasure trove beyond imagination. And speaking of treasures have you heard about David Einhorn's Bold Prediction More Rate Cuts Incoming? Now that's a story worth its weight in gold doubloons. Makes you think what's more valuable a rate cut or a ship full of AI chips?

The Data Center's Booty

Their data center business where these AI graphics processing units (GPUs) reside now accounts for over 91% of their sales. That's like saying my rum consumption accounts for over 91% of my… well you get the picture. They're even ramping up production of Vera Rubin. Sounds like a fearsome galleon doesn't it? Though in this case it's a system promising ten times more performance per watt. More power less grog needed I suppose.

Beyond the Horizon

But beware savvy? There's competition on the horizon. Advanced Micro Devices (AMD) is set to release Helios. 'Up to 6 gigawatts of AMD GPUs,' they say. Sounds like a storm brewing but Nvidia seems confident sitting on inventory commitments extending into 2027. That's like having a map that leads to the Fountain of Youth of technology keeping them young and relevant for years to come.

The Cannibalizing Customers

Even their biggest customers Amazon and Google are making their own chips. Cannibalizing I say. But even with these squabbles Nvidia seems unshaken. They say the future may see growth slowing but for now they're sailing full speed ahead. It reminds me of what I always say 'The problem is not the problem. The problem is your attitude about the problem.'

The China Conundrum

And what about China? A market worth potentially $50 billion. Missing out on that would be a 'tremendous loss,' they say. Though for now they're not assuming any data center revenue from China in their outlook. It's like having a treasure map but the island is shrouded in fog. Uncertainty is the spice of life wouldn't you agree? But for Nvidia a little clarity might be worth more than all the rum in Tortuga.