The AI Revolution Marches On -- July 31, 2024

Locator: 48277TECH.

Background:

• Tech is tracked here.
• Chips are tracked here.
• The importance of knowing the difference between GPUs and CPUs.  I forget who asked but someone on  CNBC -- "Half-Time Report? -- actually picked up on this. I was impressed.  It's also important to know who different assemblers "deal with" GPUs, CPUs, FPUs, neural engines. See System on a chip (SOC): link here.

Updates

Historical, revenue, link here:

July 31, 2024: if you view one thing today, it. needs to be the interview between Jim Cramer and AMD CEO Lisa Su. I started my position in AMD after reading the Barron's article in the issue that featured Lisa Su on the front page -- many months ago. She seems to be a lot like the OXY CEO Vikcy Hollub.

July 30, 2024: never quit reading. Link here.

July 31, 2024: CNBC practically giddy over the amount of money META and MSFT are going to be spending on Nvidia chips. Apparently META is Nvidia's biggest customer, and MSFT is going to spent $85 billion on Nvidia chips this year. Needs to be fact-checked -- heard in passing.

Link here.

I simply don't think folks / investors understand how big a deal the AI revolution is.

AMD: long interview with CEO on CNBC today. Shares up 7% today.

MSFT: link here.

From the linked article:

On the face of it, Microsoft had a decent quarter. Yet the stock fell, and that reveals a lot about what markets expect with updates from the Magnificent 7 technology stocks, and earnings more generally, these days.

On the one hand, traders are looking for reasons to sell the big technology companies that have driven the overall market’s gains for a while now, as Barron’s has pointed out previously. Now the Great Rotation into other sectors is taking hold, the easiest way to invest in beaten-down stocks is to sell the shares that have already done well.

On the other hand, the money these companies are spending on AI is going to the balance sheets of chip makers like Nvidia . Despite its shares dropping almost 20% over the past month, Nvidia got a decent boost from peer Advanced Micro Devices ’ solid earnings report Tuesday. Others in the chip sector are also getting a lift from a report that President Joe Biden’s next round of restrictions on exports to China will exempt some key allies.

When it comes to AI hype, the divide between chip makers and the rest appears to be widening. It comes down to who’s already making money from it, and those who have aspirations to make money from it one day.here’s another dynamic, too. While Microsoft says its artificial intelligence business is doing great, traders are paying more attention to the mounting costs of investing in the new technology. AI may hold the key to big profits in the future, but for now, it’s still an expense on the income statement. The same is true for other tech giants like iPhone maker Apple, retailer Amazon, Facebook-parent Meta Platforms, and Google-parent Alphabet.