Before we dive into the Artificial Intelligence (AI) world, let’s look at what happened in the markets this week.
Unsurprisingly, this was a slower week in general with limited discussions from Federal Reserve members along with earnings that are non existent.
We have about 2 weeks until earning season kicks back into gear, which means our schedule becomes very busy. BestBuy earnings last week did suggest that the replacement cycle we discussed in our annual letter is starting to take hold. Housing is also stabilizing with housing starts picking up and inventory increasing.
Today we focus on some interesting datapoints around AI and some data points around AI.
AI Survey Says Think Contrarian
CPU or GPU? Cloud or On-prem.
Why does this AI data matter?
We recently reviewed a survey of Chief Technology Officers (CTOs) and executives to gauge their views and usage trends regarding AI. We highlight three key takeaways that diverge from conventional wisdom. What we do know is that there is significant investor demand for GPU-related companies like NVIDIA.
However, bullet points #3 and #4 reveal that companies are exploring alternative methods to operate without GPUs and are finding that using CPUs for pre-trained data (typically done with GPUs) can still yield results at manageable costs. Additionally, point #5 underscores the critical role of on-premises data centers in AI and emphasizes the importance of analyzing and visualizing data within one’s environment.
The overarching message is that while many companies benefiting from the AI boost are legitimate, this survey should prompt a reevaluation of some of those prevailing assumptions.
Twitter: @_SeanDavid
The author and/or his firm have positions in the mentioned companies and underlying securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
