AI - what a mess. Executives and investors regularly refer to all advanced automation as "AI", regardless of whether the technology in question refers to machine learning, deep learning, neural networks, natural language processing, computer vision / image recognition, voice recognition, generative AI and so on. The good folks at Korn Ferry recently published the … Continue reading AI: The Blind Leading The Blind
Microsoft reported earnings results this evening. Despite MSFT's AI-related rhetoric, I don't see Generative AI as a significant near-to-intermediate-term Revenue driver. Azure's constant currency growth rate was essentially flat at 28%. I expect that Azure's growth rate will slow as we move through the December quarter into calendar 2024. Our chart below plots Azure's year-over-year … Continue reading Azure’s Revenue Growth and Generative AI
I don't believe that management teams will provide investors with formal 2024 guidance on September quarter EPS calls. However, there should be some interesting data points to pick-up on. 2024 Budgets: Most companies will not provide full 2024 budget commentary and may not provide any 2024 commentary at all. However, I would expect companies to … Continue reading What’s Important To Listen For On Upcoming Tech Earnings Calls
Yes, Nvidia's data center business will continue to thrive when the company reports results in late November as Generative AI and the large language models (LLM) that underpin Gen AI require a multi-quarter build for companies like ChatGPT/ Azure/ MSFT and Google. That's not to say that ChatGPT, Google and the various LLM startups that … Continue reading Nvidia and Generative AI
I have criticized NVIDIA (ticker: NVDA) co-founder and CEO Jensen Huang for hyping NVDA shares during the recent AI boom. Putting hyperbole aside, there is a reason why NVIDIA developed the market-leading chips that underpin the Large Language Models (LLMs) that power Generative AI products and services. Mr. Huang is that reason. While Intel (ticker: … Continue reading How Did NVIDIA Corner The LLM Chip Market? Jensen Huang Is the Answer
Clorox (ticker: CLX), has lost approximately 24% of its value since its August 14th announcement that it was hacked. While many CEOs and Boards have found cybersecurity religion, many have not. Negligence can be costly. Any company may be hacked, even those that are vigilant about cybersecurity. I don't know how vigilant Clorox was or … Continue reading My Company Was Hacked. My Stock Is Paying The Price.
For Gen AI initiatives to succeed they must be driven from the bottom up. Business users must define Gen AI use cases that drive an ROI. When I read about Gen AI pilots where the driving factor is the CEO I think to myself that such pilots are doomed to fail. I imagine the CEO … Continue reading Top-Down Gen AI Initiatives Will Fail
J.P. Morgan (JPM) CEO Jamie Dimon is incorrect when he says that AI will deliver a 3.5 day work week for the next generation. Will artificial intelligence dramatically improve productivity over the next decade and more? Sure. AI will dramatically increase productivity across industries. We have already seen it: Mobile phone apps from Apple and … Continue reading Jamie Dimon Is Wrong. AI Won’t Deliver A 3.5 Day Work Week.
Companies will largely take a conservative approach to guidance on the Q3 and Q4 EPS calls. The rubber will meet the road on the Q4 earnings calls in January when companies issue their initial 2024 guidance. That initial 2024 guidance will likely spook investors and knock stock prices back significantly. Hopefully management teams stopped listening … Continue reading How Will Q3 and Q4 EPS Seasons Play Out?
Artificial Intelligence tools such as Google Assistant are only as good as the information you share with it. Artificial Intelligence at its core is automation based upon predictive analytics. Whether it is predicting the next word in a sentence, suggesting what movie or book you may like to watch or read next, predicting what wine … Continue reading Personalized AI Is Only As Good As The Personal Information You Share