“We are not even thinking about ROI”
Today’s NVIDIA earnings are going to be super interesting to watch and here are some datapoints leading up to it.
It’s no secret that the Big Tech racing full throttle into AI. But here’s the wild part: they’re not even sweating the ROI. Instead, they’re pouring huge chunks of their CAPEX directly into NVIDIA’s pockets, driving a significant portion of NVIDIA’s revenue.
Check out the numbers:
+ Microsoft: Leads the pack, accounting for nearly 45% of their spend goes to NVIDIA which contributes to ~19% of NVIDIA’s revenue.
+ Meta: Not far behind, with around 41% of their spend which contributes to ~10%.
+ Tesla: Rounding out the top three, spending 30% of their cost with NVIDIA, contributing to 3% of NVIDIA’s revenue.
+ Alphabet and Amazon: Also heavy hitters, each adding a significant slice to NVIDIA’s pie.
So, why the big spend? CEOs like Mark Zuckerberg, Satya Nadella, and Sundar Pichai aren’t thinking about ROI right now—they’re laser-focused on winning the AI race.
The stakes? Creating a so-called AGI or “Digital God” before anyone else does, even if it means going to the brink.
Larry Page at Google reportedly said he’s willing to “go bankrupt rather than lose this race.” With beliefs like that driving decision-making, it’s clear why scaling AI capabilities—at any cost—has become the name of the game.
All this leads up to one thing: NVIDIA’s earnings report today is going to be must-watch.
This is shaping up to be a wild ride! 🎢
What are your thoughts on AI spend in Big Tech?
#AI #NVIDIA #TechInvesting #GPUs #BigTech #Innovation #BusinessStrategy #EarningsSeason
Data: Yahoo Finance, Invest Like the Best / Patrick OShaughnessyAc
