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I just listened to their earnings webcast. It looks like it's going to be yet another earnings release season of tech companies spending billions on AI infrastr

by prng2021 2y ago

I just listened to their earnings webcast. It looks like it's going to be yet another earnings release season of tech companies spending billions on AI infrastructure with nothing to show for it. And they're promising continued levels of intense spending on compute. Sundar's comment was that it's better to overspend than underspend and fall behind the competition. Time to buy more NVIDIA.

paxys 2y ago
The time to buy Nvidia was 6 months ago. At this point investors have already priced in many years of exponential growth.
- morepork 2y ago
  The time to buy Nvidia was 5 years ago, and you would have had 30x gains (or even earlier). But the upside now does look more limited
crazygringo 2y ago
> with nothing to show for it AI and LLM features are everywhere in Google products, on top of just using Gemini itself. I have no idea what you mean. They have tons already to show for it, and presumably this is just the start.
- prng2021 2y ago
  Their revenue grew 14% YoY. That's nothing special at all if you look at their historical top line growth.
  - crazygringo 2y ago
    Google (Alphabet) is already the 4th largest company in the world by market cap. So, what -- you want to see their revenue grow by 50% or something in a single year? For mature companies of that size, that's not really a thing. I think your expectations for defining AI success may be a bit too high here.
    - prng2021 2y ago
      Are you kidding me? 50% is peanuts given that AI has been touted for years to be more profound to humanity than electricity or fire: https://www.cnbc.com/2018/02/01/google-ceo-sundar-pichai-ai-is-more-important-than-fire-electricity.html https://www.cnbc.com/2018/02/01/google-ceo-sundar-pichai-ai-... AI is supposed to be a huge new revenue driver and my point, echoing others, is that it's nowhere close. They've spent double on AI compared to last year: https://finance.yahoo.com/news/alphabet-earnings-top-estimates-as-cloud-business-gains-steam-ai-losses-grow-201030203.html https://finance.yahoo.com/news/alphabet-earnings-top-estimat... "In the second quarter, Alphabet reported spending $2.2 billion building AI models across its DeepMind and Google Research organizations. That's up from $1.1 billion in Q2 2023. When exactly AI starts to generate revenue for Google’s Cloud business, let alone its ad segment, is still up in the air."

paxys 2y ago

The time to buy Nvidia was 6 months ago. At this point investors have already priced in many years of exponential growth.

morepork 2y ago
The time to buy Nvidia was 5 years ago, and you would have had 30x gains (or even earlier). But the upside now does look more limited

crazygringo 2y ago

> with nothing to show for it AI and LLM features are everywhere in Google products, on top of just using Gemini itself. I have no idea what you mean. They have tons already to show for it, and presumably this is just the start.

prng2021 2y ago
Their revenue grew 14% YoY. That's nothing special at all if you look at their historical top line growth.
- crazygringo 2y ago
  Google (Alphabet) is already the 4th largest company in the world by market cap. So, what -- you want to see their revenue grow by 50% or something in a single year? For mature companies of that size, that's not really a thing. I think your expectations for defining AI success may be a bit too high here.
  - prng2021 2y ago
    Are you kidding me? 50% is peanuts given that AI has been touted for years to be more profound to humanity than electricity or fire: https://www.cnbc.com/2018/02/01/google-ceo-sundar-pichai-ai-is-more-important-than-fire-electricity.html https://www.cnbc.com/2018/02/01/google-ceo-sundar-pichai-ai-... AI is supposed to be a huge new revenue driver and my point, echoing others, is that it's nowhere close. They've spent double on AI compared to last year: https://finance.yahoo.com/news/alphabet-earnings-top-estimates-as-cloud-business-gains-steam-ai-losses-grow-201030203.html https://finance.yahoo.com/news/alphabet-earnings-top-estimat... "In the second quarter, Alphabet reported spending $2.2 billion building AI models across its DeepMind and Google Research organizations. That's up from $1.1 billion in Q2 2023. When exactly AI starts to generate revenue for Google’s Cloud business, let alone its ad segment, is still up in the air."