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close video Nvidia has huge shoes to grow into: Sarah Kunst

Cleo Capital Managing Director Sarah Kunst provides insight on key stocks to look at on Making Money.

Nvidia has emerged as one of the leaders of the tech companies racing to incorporate advanced artificial intelligence (AI) tools into their products, and the company’s stock has surged amid growth in demand with a 20% plus gain on Thursday alone. 

While there are no "pure play" AI stocks, as all the publicly-traded companies heavily involved in AI have other business offerings, Nvidia has come to be considered one of the leaders in the field despite being in a similar position. Ticker Security Last Change Change % NVDA NVIDIA CORP. 371.46 +66.08 +21.64%

Nvidia stock has soared by 113% year-to-date as of Wednesday’s close – outpacing some of the biggest names in tech and AI including Google and Microsoft which have enjoyed 30% growth in their share prices in the same period. After the market closed Wednesday and Nvidia held its earning call, its share price surged as much as 28% in after-hours trading to extend its lead as the world’s most valuable chipmaker and the fifth most valuable company on Wall Street.

Nvidia .

"Generative AI is driving exponential growth in compute requirements and a fast transition to Nvidia accelerated computing, which is the most versatile, most energy efficient and the lowest [total cost of ownership] approach to train and deploy AI," said Colette Kress, Nvidia chief financial officer and executive vice president. "Generative AI drove significant upside in demand for our products, creating opportunities and broad-based global growth across all markets."

NVIDIA STOCK SURGES ON DOMINANT A.I. MARKET POSITION, BUY RECOMMENDATION FROM HSBC

Nvidia has emerged as a major player in the tech sector’s push to deploy AI solutions. (Photo by Justin Sullivan/Getty Images / Getty Images)

Nvidia is deeply involved in AI in a number of areas, as it produces semiconductors, high-end graphics processing units (GPUs) and application programming interfaces (APIs) used in supercomputers and machine learning applications. Both GPUs and APIs are used in the process of training machine-learning models, and require sophisticated semiconductors, or computer chips, to generate the computing power needed to carry out the task of processing vast quantities of data.

Kress explained that several prominent tech companies with cloud data storage offerings – including Google Cloud, Oracle Cloud and Microsoft Azure – are seeing "strong demand" from "generative AI pioneers" and deploying Nvidia’s tools to satisfy it.

"Enterprise demand for AI and accelerated computing is strong. We are seeing momentum in verticals such as automotive, financial services and telecom where AI and accelerated computing are quickly becoming integral to customers’ innovation roadmaps and competitive positioning," Kress said.

ARTIFICIAL INTELLIGENCE: FREQUENTLY ASKED QUESTIONS ABOUT AI

Nvidia’s stock prices surged to record highs after a blockbuster earnings report. (REUTERS/Robert Galbraith / Reuters)

Nvidia AI Enterprise has more than 100 frameworks, pre-trained models and development tools that are focused on various tasks, such as speeding up data science tasks and AI model development.

She went on to say that Bloomberg is using Nvidia tools for a 50 billion parameter model, while AT&T is "working with us on AI to improve fleet dispatches so their field technicians can better serve customers."Ticker Security Last Change Change % MSFT MICROSOFT CORP. 313.85 -1.41 -0.45%GOOGL ALPHABET INC. 120.90 -1.66 -1.35%ORCL ORACLE CORP. 98.32 -0.22 -0.22%

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Nvidia has a partnership with Microsoft in which it will integrate enterprise-ready AI software into Microsoft’s Azure Machine Learning platform to help Azure customers rapidly build and deploy custom applications. 

"Our collaboration with Microsoft transformed Windows into the ideal platform for creators and designers harnessing generative AI to elevate their creativity and productivity," Kress noted.

Reuters contributed to this report.

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Rocket Report: Astroscale chases down dead rocket; Ariane 6 on the pad

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RIP B1060 — Rocket Report: Astroscale chases down dead rocket; Ariane 6 on the pad Rocket Factory Augsburg, a German launch startup, nears a test-firing of its booster.

Stephen Clark – May 3, 2024 11:00 am UTC Enlarge / This image captured by Astroscale’s ADRAS-J satellite shows the discarded upper stage from a Japanese H-IIA rocket.Astroscale reader comments 15

Welcome to Edition 6.42 of the Rocket Report! There are several major missions set for launch in the next few months. These include the first crew flight on Boeing’s Starliner spacecraft, set for liftoff on May 6, and the next test flight of SpaceX’s Starship rocket, which could happen before the end of May. Perhaps as soon as early summer, SpaceX could launch the Polaris Dawn mission with four private astronauts, who will perform the first fully commercial spacewalk in orbit. In June or July, Europe’s new Ariane 6 rocket is slated to launch for the first time. Rest assured, Ars will have it all covered.

As always, we welcome reader submissions, and if you don’t want to miss an issue, please subscribe using the box below (the form will not appear on AMP-enabled versions of the site). Each report will include information on small-, medium-, and heavy-lift rockets as well as a quick look ahead at the next three launches on the calendar.

German rocket arrives at Scottish spaceport.Rocket Factory Augsburg has delivered a booster for its privately developed RFA One rocket to SaxaVord Spaceport in Scotland, the company announced on X. The first stage for the RFA One rocket was installed on its launch pad at SavaVord to undergo preparations for a static fire test. The booster arrived at the Scottish launch site with five of its kerosene-fueled Helix engines. The remaining four Helix engines, for a total of nine, will be fitted to the RFA One booster at SaxaVord, the company said.

Aiming to fly this year… RFA hopes to launch its first orbital-class rocket by the end of 2024. The UK’s Civil Aviation Authority last month granted a range license to SaxaVord Spaceport to allow the spaceport operator to control the sea and airspace during a launch. RFA is primarily privately funded but has won financial support from the European Space Agency, the UK Space Agency, and the German space agency, known as DLR. The RFA One rocket will have three stages, stand nearly 100 feet (30 meters) tall, and can carry nearly 2,900 pounds (1,300 kilograms) of payload into a polar Sun-synchronous orbit. Advertisement

Arianespace wins ESAlaunch contract.The European Space Agency has awarded Arianespace a contract to launch a joint European-Chinese space science satellite in late 2025, European Spaceflight reports.The Solar wind Magnetosphere Ionosphere Link Explorer (SMILE) is a 4,850-pound (2,200-kilogram) spacecraft that will study Earths magnetic environment on a global scale. The aim of the mission is to build a more complete understanding of the Sun-Earth connection. On Tuesday, ESA officially signed a contract for Arianespace to launch SMILE aboard a Vega C rocket, which is built by the Italian rocket-maker Avio.

But it may notkeep it… In late 2023, ESA member states agreed to allow Avio to market and manage the launch of Vega C flights independent of Arianespace. When the deal was initially struck, 17 flights were contracted through Arianespace to be launched aboard Vega vehicles. While these missions are still managed by Arianespace, Avio is working with the launch provider to strike a deal that would allow the Italian rocket builder to assume the management of all Vega flights. The Vega C rocket has been grounded since a launch failure in 2022 forced Avio to redesign the nozzle of the rocket’s solid-fueled second stage motor. Vega C is scheduled to return to flight before the end of 2024.(submitted by Ken the Bin) The Rocket Report: An Ars newsletter The easiest way to keep up with Eric Berger’s space reporting is to sign up for his newsletter, we’ll collect his stories in your inbox. Sign Me Up!

Update on ABL’s second launch.ABL Space Systems expected to launch its second light-class RS1 rocket earlier this year, but the company encountered an anomaly during ground testing at the launch site in Alaska, according to Aria Alamalhodae of TechCrunch. Kevin Sagis, ABL’s chief engineer, said there is “no significant delay” in the launch of the second RS1 rocket, but the company has not announced a firm schedule. “During ground testing designed to screen the vehicle for flight, an issue presented that caused us to roll back to the hangar,” Sagis said, according to Alamalhodae. “We have since resolved and dispositioned the issue. There was no loss of hardware and we have validated vehicle health back out on the pad. We are continuing with preparations for static fire and launch.”

Nearly 16 monthswithout a launch… ABL’s first RS1 test flight in January 2023 ended seconds after liftoff with the premature shutdown of its liquid-fueled engines. The rocket crashed back onto its launch pad in Alaska.An investigation revealed a fire in the aft end of the RS1 booster burned through wiring harnesses, causing the rocket to lose power and shut off its engines. Engineers believe the rocket’s mobile launch mount was too small, placing the rocket too close to the groundwhen it ignited its engines. This caused the hot engine exhaust to recirculate under the rocket and led to a fire in the engine compartment as it took off. Page: 1 2 3 Next → reader comments 15 Stephen Clark Stephen Clark is a space reporter at Ars Technica, covering private space companies and the worlds space agencies. Stephen writes about the nexus of technology, science, policy, and business on and off the planet. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars

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Apples Q2 2024 earnings reveal a drop in iPhone, iPad sales

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Q2 2024 — Apples Q2 2024 earnings reveal a drop in iPhone, iPad sales Services growth looked rosy as Apple’s hardware revenue in China slowed.

Samuel Axon – May 2, 2024 10:32 pm UTC Enlarge / The Apple Park campus in Cupertino, California.Anadolu Agency | Getty reader comments 95

Apple’s earnings report for the second quarter of the company’s 2024 fiscal year showed a slide in hardware sales, especially for the iPhone. Nonetheless, Apple beat analysts’ estimates for the quarter thanks to the company’s rapidly growing services revenue.

iPhone revenue dropped from $51.33 billion in the same quarter last year to $45.96 billion, a fall of about 10 percent. This was the second consecutive quarter with declining iPhone revenues. That said, investors feared a sharp drop before the earnings call.

Notably, Apple’s revenue in the region it dubs Greater China (which includes China, Taiwan, Singapore, and Hong Kong) fell 8 percent overall. The company fared a little better in other regions. China’s economy is slowing even as China-based Huawei is taking bigger slices of the pie in the region.

Further ReadingReport: Redesigned M3 iPad Pros, large-screened iPad Air now expected in MayGlobally, Mac revenue was $7.5 billion compared to last year’s $7.12 billion. Other productswhich includes the Watch, AirPods, Apple TV 4K, HomePod and the new Vision Pro headsetwas down to $7.9 billion from last year’s $8.76 billion, despite the fact this quarter included the launch of the Vision Pro.

iPad revenue was also down, at $5.6 billion from $6.67 billion. Apple is expected to launch new iPads next week, which suggests that those updates are needed to achieve the company’s business goals.

The rosiest revenue category was services, which includes everything from Apple Music to iCloud. Its revenue was $23.9 billion, up from Q2 2023’s $20.91 billion.

The company also announced authorization of $110 billion for share purchases. reader comments 95 Samuel Axon Samuel is a senior editor at Ars Technica. He primarily covers software development, gaming, Apple, consumer technology, and mixed reality. He has been writing about gaming and technology for 15 years, and is a Chicago-based game developer. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars

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Google grilled in closing arguments of landmark DOJ antitrust case: 'You really think that DuckDuckGo is a competitor?'

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A federal judge hammered key elements of Googles defense on Thursday as closing arguments began in a landmark antitrust trial that could potentially upend the tech giants online search empire.

Judge Amit Mehta, who is expected to rule later this year on whether Google has maintained an illegal monopoly over the online search market, zeroed in on the companys claims that it faces stiff competition despite holding an approximately 90% market share.

Googles lawyers pointed to smaller search engines such as privacy-focused DuckDuckGo, tech giants like Microsoft and Amazon and even media outlets such as ESPN as opponents in the race for user eyeballs.

“You really think that DuckDuckGo is a competitor on Google?” the judge askedGoogle’s lawyers, according to AFP.

DuckDuckGo holds a less than 3% market share compared to Googles 90% share, according to stats that surfaced during the trial.

Mehta also questioned whether rival search engines could be able to offer similar default deal packages to other companies, given the multi-billion-dollar price tag established by Google.

The exchange was just one example of sharp questions that Mehta aimed at both Google and the Justice Departments legal team.

Mehta raised questions as to whether the DOJs legal team had sufficiently shown that Googles default deals have had anti-competitive effects on rivals or stifled their ability to innovate.

Closing arguments will conclude on Friday.

DOJ antitrust chief Jonathan Kanter and Google president of global affairs Kent Walker were among the figures in attendance in court.

The Justice Department has argued that Google relied on billions in payments to partners — including $26.3 billion in 2021 alone — to ensure its search engine was enabled by default on most smartphones.

The judge warned that government attorneys faced a hard road to prove that Google had failed to innovate in online search over the last decade.

At one point during the hearing, Mehta pointed out that Microsoft admitted it did not put enough resources into building its mobile search business.

“That’s not anticompetitive, the fact that Google was smart enough to get on the mobile bandwagon before Microsoft,” Mehta said.

A Justice Department attorney fired back, asserting that a mistake by one rival doesnt mean Google gets to monopolize this market forever.

Last falls trial included appearances by several high-profile witnesses, including Google CEO Sundar Pichai, Microsoft CEO Satya Nadella and key Apple executive Eddy Cue.

Unredacted documents from Cue’s testimony that surfaced Tuesday showed Google paid a whopping $20 billion to Apple in 2022 alone to be the default search engine on its Safari web browser.

If Mehta eventually rules against Google, a second trial will be held to determine an appropriate remedy to address the monopoly.

Experts have said that could include the implementation of a choice screen for users or even a breakup of Googles business.

Google isnt the only tech giant in the midst of federal antitrust proceedings.

The Justice Department filed an antitrust lawsuit against Apple earlier this year.

Separately, the Federal Trade Commission has pending actions against Meta and Amazon.

With Post wires

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