The artificial intelligence (AI) market continues to expand, with major players making significant moves. Nvidia (NVDA) maintains its leadership position by exceeding third quarter estimates earlier this week while Amazon (AMZN) deepened its AI commitment with an additional $4 billion investment in Anthropic, designating the startup as Amazon Web Services' primary service provider. "We really are at the building stage of AI," Epistrophy Capital Research chief market strategist Cory Johnson tells Morning Brief, calling it "a real life-changing thing." Johnson notes that the Amazon-Anthropic partnership is "interesting... from a semiconductor perspective." He explains that with Anthropic agreeing to help develop Amazon's "Trainium" chips, Amazon has effectively "bought themselves a customer" for when the chips are completed. However, Johnson raises concerns about Nvidia's market position: "I'm really curious about what the partners of Nvidia are going to say to Nvidia three years from now. 'Hey, remember when you took your gross margins from 46% to 79%, and you made us pay all that when we couldn't go anywhere else?' I mean [I] wonder if that's going to create bad feelings among customers." Watch the video above to hear the AI startups Johnson believes are establishing themselves as real competitors in the AI space. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith Read More...
The artificial intelligence (AI) market continues to expand, with major players making significant moves.
Nvidia (NVDA) maintains its leadership position by exceeding third quarter estimates earlier this week while Amazon (AMZN) deepened its AI commitment with an additional $4 billion investment in Anthropic, designating the startup as Amazon Web Services’ primary service provider.
“We really are at the building stage of AI,” Epistrophy Capital Research chief market strategist Cory Johnson tells Morning Brief, calling it “a real life-changing thing.”
Johnson notes that the Amazon-Anthropic partnership is “interesting… from a semiconductor perspective.” He explains that with Anthropic agreeing to help develop Amazon’s “Trainium” chips, Amazon has effectively “bought themselves a customer” for when the chips are completed.
However, Johnson raises concerns about Nvidia’s market position: “I’m really curious about what the partners of Nvidia are going to say to Nvidia three years from now. ‘Hey, remember when you took your gross margins from 46% to 79%, and you made us pay all that when we couldn’t go anywhere else?’ I mean [I] wonder if that’s going to create bad feelings among customers.”
Watch the video above to hear the AI startups Johnson believes are establishing themselves as real competitors in the AI space.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Angel Smith
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