Nvidia teams up with Hugging Face to offer cloud-based AI training
TechCrunchAug 06, 2023
The Facts
Nvidia shares rose in after-hours trading on Wednesday after the company surpassed estimates in both earnings and revenue for the second quarter of 2023 ending July 30.
The company's shares rose by as much as 9% following a year-over-year sales growth of 101% to $13.5B in Q2 2023, higher than the $11.2B estimation by Wall Street analysts.
The Spin
Narrative A
Years of investment into the AI sector are paying off for Nvidia, which continues to blow quarterly expectations out of the water. As companies continue to get serious over the rise of AI, the importance of Nvidia will only continue to grow. The technology industry is seeing a long-term transition toward the future, and Nvidia has positioned itself as an industry leader.
Narrative B
The rise of Nvidia alongside the continued success of Microsoft, Google, and all others aboard the AI train, is both cause for excitement and concern. Investors must only look back to the infamous "dot.com bubble" for justification. While AI certainly holds opportunities for the future, tech sector booms and busts have certainly happened before.
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