Dave Vellante's Breaking Analysis: The AI Era Brilliantly Displays Different Paths And Outcomes For Nvidia And Broadcom
Data intelligence and analytics company, Wikibon, recently published an analysis of the artificial intelligence (AI) platform shift that took place at Nvidia's GTC conference and Broadcom's investor day. The article focuses on the changing landscape of AI and how Nvidia and Broadcom are positioned to capitalize on the wave.
Nvidia and Broadcom are deemed to be the two most well-positioned companies to capitalize on the AI wave and dominate their respective markets for the next decade. However, the article also notes that they will not only be enablers of a broader ecosystem that will create more value than each of these firms in and of themselves, but their strategies and paths are dramatically different and may be headed for an eventual collision course.
The article further analyses the state of AI and how Nvidia and Broadcom are leading the way with different strategies, concluding that both have impressive momentum and strong paths forward, but that their approaches are overlapping and may eventually collide. It encourages readers to watch the full video analysis to learn more about the future of AI and the paths taken by these two companies.
Wikibon also recently published an article analyzing the unintended genius of Broadcom's route to AI dominance. The article highlights the unique business model of Broadcom and how it sets itself apart from other companies in the technology industry. It explains how Broadcom's strategy is to go after established markets with durable franchises and serve customers in those markets with major engineering investments to achieve a dominant position. It also notes that sometimes, the company lucks out with this strategy and catches a wave accidentally by design. The article extracts key nuggets from a recent sit-down with Broadcom's president of the Semiconductor Solutions Group and unpacks the company's contrarian business technology model.
Another recent Wikibon analysis focuses on the unintended consequences of OpenAI's approach to AI supervision. The article discusses OpenAI's introduction of the concept of superalignment and its team created to study scientific and technical breakthroughs to guide and control AI systems that are much more capable than humans. It also examines the team's recent effort to supervise more powerful AI with less powerful models and its mixed results, bringing to light several more questions about the future of AI and the ability of humans to control such advanced machine intelligence. The article shares the results of OpenAI's superalignment research and encourages readers to watch the full video analysis to learn more about the future of AI and the potential challenges it may face.
Wikibon also published a recent article on the 2024 IT spending outlook, which shows a cautious start with an optimistic finish. According to spending intentions data from over 1,700 IT decision-makers, executives anticipate a 4.3% growth in technology budgets for the year, an improvement from the 3.5% growth seen in 2023 and higher than the 3.8% expectation from October. However, the forecasts for 2024 are back-loaded, with Q1 2024 forecasts at 2.4%, indicating that the optimism is concentrated in the second half of the year. The article also notes that cloud optimization is slowing but that pockets of cloud cost-cutting remain, and that while AI gets all the headlines, its contribution to revenue is still a small fraction of the overall spending pie. It suggests that the generative AI uplift in cloud will surpass $10B this year.