When will prospects begin shopping for all these AI chips?

Nvidia’s outcomes present arduous means ahead

It’s the most effective and worst time to be in semiconductors proper now. Silicon Valley traders are as soon as once more proudly owning as much as their namesakes and taking a deep curiosity in next-generation silicon, with main lights like Graphcore in the UK hitting unicorn standing whereas weirdly named and stealthy startups like Groq within the Bay Space develop up.

Progress in chips able to processing synthetic intelligence workflows is predicted to swell phenomenally over the approaching years. As Asa Fitch on the Wall Avenue Journal famous yesterday, “Demand for chips specialised for AI is rising at such a tempo the trade can barely sustain. Gross sales of such chips are anticipated to double this yr to round $eight billion and attain greater than $34 billion by 2023, in line with Gartner projections.”

But, all these rosy projections don’t immediately make the monetary outcomes of corporations like Nvidia any simpler to swallow. The corporate reported its quarterly earnings final week, and the outcomes have been weak — just about throughout the board.

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