Im curious if the massive AI spend on hardware is coming to an end and the new spend will be AI software and development.
-Stanley Druckenmiller cut his NVDA stake
-Brad Gerstner a top advocate for AI today on cnbc mention his fund has a few short positions and trimmed some stakes in AI holdings.
-NVDA insiders have been consistently selling over the last year. All insiders at AI companies have been for that matter.
-SMCI didn't pre release earnings as they did before.
-NVDA delivery delays are shrinking.
-MCHP earnings were in line, didnt blow past expectations.
-INTC bombed on earnings
-AMD didnt blow past expectations
-ARM releases earnings this week, will see what their order flow looks like.
-ASML orders took a dive.
-Buffet sold some Apple, doenst seem to be phased by their AI initiatives.
-Even Meta mentioned their new goal is AI metaverse software development. Seems they got all the chips they need. They also lowered guidance going forward.
-These earnings are crucial for NVDA, this could determine the next steps for the AI cycle.
-Theres also growing competition in chip developments, seems every company(Apple, Google, Microsoft, Apple, Oracle, etc) are making their own chips for custom use.
I just dont think there is an issue getting chip anymore. The issue is creating the software for actual use of AI and generating cash flow. The 1 year honeymoon period may be over, AI spending needs to start adding to earnings. otherwise its a massive expense for alot of companies of buying the chips and spending a lot of money on electricity to run the machines.
Phase 1 hardware accumulation coming to an end
Phase 2 software development starting to ramp up
