Dave Vellante's Breaking Analysis: The AI Era Brilliantly Highlighted By Two Different Industry Leaders
It was a week packed with significant industry news as Nvidia held its GTC conference and Broadcom hosted its investor day, both heavily focused on the evolving world of AI. Breaking Analysis is a weekly editorial program combining knowledge from SiliconANGLE's theCUBE with spending data from Enterprise Technology Research. This week, Dave Vellante, co-CEO and chief analyst at Wikibon, and theCUBE's Stu Miniman discussed the highlights from both events and analyzed how they signal the beginning of the AI era.
Nvidia and Broadcom are currently the two most-positioned companies to capitalize on the AI wave and will likely dominate their respective markets for the next decade. However, they will also serve as enablers of a broader ecosystem that collectively creates more value than either individual company. Nvidia's GTC conference showcased its vision for AI, including its Omniverse platform and the impact on various industries. In contrast, Broadcom's investor day highlighted its unique business model and path to AI dominance. The two companies share a significant overlap in strategy but are headed for a collision course in the long term.
Vellante believes GTC24 was the most important event in the history of the technology industry, even surpassing the impact of Steve Jobs' iPhone launches. Its reach, vision, ecosystem impact, and recognition that the AI era will permanently change the world position it as a landmark event. On the other hand, Broadcom's investor day emphasized its differentiated strategies and paths in the AI era. The company focuses on serving customers in established markets with major engineering investments to achieve dominant positions in each target sector. Its distinct business approach has resulted in some luck in catching waves by design, and its current portfolio of acquisitions and investments positions it well for the AI era.
Nvidia and Broadcom are enablers of a broader ecosystem that collectively creates more value than individual companies. The two companies have dramatically different but overlapping strategies that may be headed for an eventual collision course. However, they will each dominate their respective markets for the better part of a decade.
This week, Vellante and Miniman discussed the state of AI and how Nvidia and Broadcom are leading the way with dramatically different but overlapping strategies that may be headed for an eventual collision course. They also explored the ongoing dynamics in the cybersecurity space and identified the levers powering CrowdStrike's path to $5B by FY2026 and $10B by the end of the decade. Additionally, they provided an update on their latest hyperscale cloud spending and market share data and analyzed the ETR survey data on cloud optimization, the generative AI uplift for the big three US cloud players, and industry trends in cloud spending by platform.
As we progress into 2024, IT decision-makers are cautiously optimistic about spending levels, especially for the second half. All hyperscalers report that cloud optimization is slowing, but pockets of cloud cost-cutting remain. While AI gets all the headlines, its contribution to revenue is still a small fraction of the overall spending pie. However, we believe the generative AI uplift in cloud will surpass $10B this year.