Tesla CEO Elon Musk Says He Feels 'Like A Wince' When Saying 'GPU' As He Boasts Rapid Progress With AI Compute: 'Need A New Word'
Portfolio Pulse from Ananya Gairola
Elon Musk, CEO of Tesla Inc. (NASDAQ:TSLA), expressed dissatisfaction with the term GPU during the company's first-quarter earnings call, highlighting Tesla's rapid progress in AI infrastructure expansion. Tesla has installed 35,000 H100 computers, with plans to reach 85,000 by year-end, primarily for AI training. Musk's comments follow Tesla's reported Q1 revenue of $21.0 billion, a 9% decrease year-over-year, missing estimates. Meanwhile, Nvidia Corporation (NASDAQ:NVDA) has seen significant demand for its H100 chip, contributing over $1 trillion to its value, with customers facing up to six months' wait times.
April 24, 2024 | 7:39 am
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NEUTRAL IMPACT
Tesla's Q1 revenue fell 9% YOY to $21.0 billion, missing estimates, but shows significant AI infrastructure expansion with 35,000 H100 computers installed.
While Tesla's Q1 revenue miss might concern investors, the significant investment and progress in AI infrastructure, as indicated by the installation of H100 computers, could signal strong future capabilities and efficiencies. The mixed impact of financial performance and strategic investments makes the short-term stock impact neutral.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Nvidia's H100 chip has seen substantial demand, contributing over $1 trillion to its value, with customers facing up to six months' wait times.
Nvidia's H100 chip's significant demand and its substantial contribution to the company's value highlight its strong position in the AI and computing sectors. The ongoing strong demand, despite long wait times, suggests a positive short-term impact on Nvidia's stock as it underscores the company's market dominance and innovation in AI technologies.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80