Nvidia's CEO discusses the company's strong quarter and chip demand. They explore the competition in AI chips and Snowflake's potential growth. Companies discussed: NVDA, AMD, INTC, SNOW
NVIDIA's strong quarter is driven by the demand for generative AI and large language models, but there is concern about potential overextension in the future.
Snowflake's success lies in their ability to convince large companies to increase their reliance on the platform, with a growing ecosystem and increased data usage.
Deep dives
NVIDIA's Impressive Growth and Future Prospects
NVIDIA has experienced remarkable growth, with revenue up 101% year over year and data center sales up 171% from a year ago. The data center business is a primary driver of NVIDIA's growth. Demand for generative AI is fueling their success, and the world's insatiable appetite for large language models is contributing to the continued brisk pace of growth. However, there is a concern that NVIDIA may get overextended in the future, leading to inventory write-downs and reduced margins. While the market may not have reacted as expected to the strong results, the overall outlook for NVIDIA remains positive, although it is uncertain how long the high growth rates can be sustained.
Snowflake's Strong Performance and Potential for Long-Term Growth
Snowflake, a provider of advanced data warehouse solutions, had a solid quarter with product revenue up 37% year over year. They have been successful in convincing large companies to increase their consumption and reliance on the snowflake platform for storing, analyzing, and processing data. The number of customers spending a million dollars or more annually has increased by 63%, which demonstrates their ability to drive growth from existing customers. Additionally, snowflake's marketplace listings and stable edges are growing, indicating a growing ecosystem and increased data usage. While the growth rate may not be triple digits, snowflake has the potential for sustained high growth for a longer period. It is crucial to be mindful of the optimized spending in the enterprise software market and the potential for re-acceleration in the future.
Snowflake's Marketing Strategy and Data Cloud World Tour
Snowflake's data cloud world tour is a marketing initiative aimed at generating excitement and engaging with customers. The tour involves visiting various cities and regions to meet customers, understand their needs, and showcase the capabilities of the snowflake platform. While the rock-and-roll-inspired approach may seem excessive, getting face-time with customers and building relationships is essential for success in the enterprise software market. The tour serves as a sales conference, providing an opportunity to discuss workloads and establish connections. Despite the flashy nature of the tour, what matters most is the engagement with customers and understanding their requirements.
Just how big can Nvidia get? For CEO Jensen Huang, it’s to infinity and beyond.
(00:21) Tim Beyers and Deidre Woollard discuss: - Nvidia’s strong quarter and the cyclicality of chip demand. - Why Nvidia isn’t the only game in town for AI chips. - How Snowflake’s data warehouse solutions might grow over time.
Companies discussed: NVDA, AMD, INTC, SNOW
Host: Deidre Woollard Guest: Tim Beyers Producer: Ricky Mulvey Engineer: Dan Boyd