Chip giant projects record revenue with AI fever – 05/25/2023 – Market

Chip giant projects record revenue with AI fever – 05/25/2023 – Market

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AI powers Nvidia’s bottom line

The first results of the current fever for AI (artificial intelligence) and language models such as ChatGPT and Bard have begun to appear in large companies and on the Stock Exchange.

Nvidia, the world’s largest semiconductor chip company, projected sales of $11 billion for the current quarter, which would be a record result and 64% higher than the same period in 2022.

Expectations made your stocks skyrocket 25% in the aftermarket, which puts the company close to US$ 1 trillion in market value – a club now frequented by Apple, Microsoft, Saudi Aramco, Google and Amazon.

Understand: Nvidia could be one of the winners of the AI ​​gold rush because its chips are essential for these new tools to become scalable.

  • The company’s components are used in supercomputers, responsible for running and handling user access to large AI models.
  • Nvidia does not manufacture its own chips. It buys from suppliers such as Taiwanese TSMC and develops the components.

The company’s CEO, Jensen Huan, said that it is significantly increasing production and that the company was already developing a more advanced generation of components to supply the demand of data centers.

In the middle of the fight: The growth projected by the American giant could be even greater if it weren’t for the government’s ban on exporting advanced chips to China, a country that is also moving rapidly towards new AI tools.

TikTok store skates in the West

TikTok is relocating employees who were working on the launch in Brazil of the TikTok Shop, the group’s sales tool, to send them to markets where the service already exists, according to the Financial Times.

Also according to the newspaper, the company will prioritize the development of the TikTok Shop in the United Kingdom and the United States before launching the novelty in other markets, such as Brazil.

Understand: the tool allows users to purchase products directly in the app, by clicking on an orange basket with items that are shown in short videos on the platform.

Another possibility is the live commerce format, in which influencers make live broadcasts showing and using items that can be purchased by the user at the same time they appear on the screen.

The idea is that creators can sell their own products or that they associate with brands and receive a percentage of sales – TikTok also takes a share.

Which explains: live commerce models are all the rage in Asia, especially in China. Douyin – as TikTok is called there – has sold more than 10 billion products, according to the Financial Times.

  • ByteDance, the startup behind these apps, has yet to replicate its success in the West, prompting internal restructuring.

Jet executive blames pets for CO2

To defend himself from criticism that private jets are one of the villains of global warming, an industry executive claimed that pets pollute as much or more.

The comparison came from Patrick Hansen, chief executive of Luxaviation, from Luxembourg, when he said that one of his clients emits around 2.1 tons of CO₂ per year with travel, and that this would be equivalent to three dogs.

He stated that he was referring to the book “How Bad Are Bananas” [Como as bananas são ruins]by a British academic, who cites the emission of 700 kg of carbon by a dog in one year.

Yes but… The author of the book himself questioned the allegation, stating that the emission of the jet cited by the executive was “suspiciously low”.

  • He added that he was “surprised and disappointed to hear the data in my book used to defend the false ecological claims made by Luxaviation”.

Understand the discussion: It is not new that climate activists condemn the use of executive jets. Criticism has only increased since the start of the pandemic, when demand for these aircraft exploded.

It was for this reason that France decided this week to ban short domestic flights that can be substituted for an existing train journey.

Numbers from a 2022 Oxfam report:

  • 10 times bigger is the carbon footprint of private jets relative to commercial airlines.
  • 1% of the world’s population is responsible for half of the total emissions of the aviation industry.

What if the avian flu reaches the farms?

Avian flu for the time being is restricted to wild birds in Brazil, but an eventual arrival of the disease in commercial farms in the country should cause significant damage, shows the column Vaivém das Commodities.

The national production of chicken meat is 14.5 million tons per year, second only to the US (21 million).

Avian flu arrived on US farms in 2022, and since then the country has accumulated 58.8 million of dead birds and billions to try to control the disease.

How would the impact in Brazil be:

  • In workers: Poultry production employs 213,200 people at the gate and 294,200 in the agroindustry.
  • in the economy: the country is the world’s largest exporter of protein, and foreign sales totaled US$ 9.7 billion in 2022. Production inside the gate, represented by small properties, reached a value of BRL 112.1 billion.
  • In prices: as is the case abroad, not only would chicken meat become more expensive, but the impact would also be on the rise in prices for eggs.

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