Cloud Computing Software Stock To Benefit From AI Business
Cloud computing stock ServiceNow is forming a base and expanding its AI offerings through partnerships with companies like Nvidia, boosting its workflow automation system and productivity.
Topics
Posted 8/24/2023, 6:29:00 PM
investors.com
Relevant topic timeline:
- Aidan Gomez, CEO of Cohere, and Edo Liberty, CEO of Pinecone, will be participating in a live audio chat with subscribers to discuss the future of AI.
- The discussion will be led by Stephanie Palazzolo, author of AI Agenda, and will cover the rapidly developing field of AI.
- The article mentions the ongoing shortage of Nvidia's cloud-server chips and the competition between Nvidia and cloud providers like Amazon Web Services.
- Nvidia is providing its latest GPU, the H100, to cloud-server startups like CoreWeave, Lambda Labs, and Crusoe Energy to promote competition and showcase its capabilities.
- The article is written by Anissa Gardizy, who is filling in for Stephanie as the cloud computing reporter for The Information.
- Nvidia is giving its newest AI chips to small cloud providers that compete with major players like Amazon Web Services and Google.
- The company is also asking these small cloud providers for the names of their customers, allowing Nvidia to potentially favor certain AI startups.
- This move highlights Nvidia's dominance as a major supplier of graphics processing units (GPUs) for AI, which are currently in high demand.
- The scarcity of GPUs has led to increased competition among cloud providers and Nvidia's actions could further solidify its position in the market.
- This move by Nvidia raises questions about fairness and competition in the AI industry.
- Amazon Web Services (AWS) is facing pressure as its growth and profit margins decline, while competitors like Microsoft and Google gain ground in the artificial intelligence (AI) market.
- AWS CEO Adam Selipsky defended the company's position in the generative AI race, stating that AWS is not behind.
- AWS announced that its servers powered by Nvidia H100 graphics processing units are now available to customers, but only in its North Virginia and Oregon data centers.
- The company's second quarter earnings report is expected to address concerns about AWS and AI.
- Nvidia is supporting multiple cloud-provider startups, further intensifying competition in the AI market.
The main topic of the article is the strain on cloud providers due to the increased demand for AI chips. The key points are:
1. Amazon Web Services, Microsoft, Google, and Oracle are limiting the availability of server chips for AI-powered software due to high demand.
2. Startups like CoreWeave, a GPU-focused cloud compute provider, are also feeling the pressure and have secured $2.3 billion in debt financing.
3. CoreWeave plans to use the funds to purchase hardware, meet client contracts, and expand its data center capacity.
4. CoreWeave initially focused on cryptocurrency applications but has pivoted to general-purpose computing and generative AI technologies.
5. CoreWeave provides access to Nvidia GPUs in the cloud for AI, machine learning, visual effects, and rendering.
6. The cloud infrastructure market has seen consolidation, but smaller players like CoreWeave can still succeed.
7. The demand for generative AI has led to significant investment in specialized GPU cloud infrastructure.
8. CoreWeave offers an accelerator program and plans to continue hiring throughout the year.
Salesforce introduced its AI layer, Einstein, in 2016. Recently, it announced the release of Einstein Studio, allowing customers to bring their own model into Data Cloud. This solution is aimed at companies with sophisticated data teams who want to put their existing models to work in other contexts. Salesforce is also working on partnerships with other platforms like Google Vertex AI and plans to support Databricks and Snowflake in the future. This move suggests that Salesforce is positioning itself as a data company.
DigitalOcean is a promising AI stock to buy due to its acquisition of AI start-up Paperspace and its focus on simplicity, while Cloudflare's AI potential is overshadowed by its lack of profitability and high stock valuation.
Nvidia's CEO, Jensen Huang, predicts that the artificial intelligence boom will continue into next year, and the company plans to ramp up production to meet the growing demand, leading to a surge in stock prices and a $25 billion share buyback.
Cloud computing vendor ServiceNow is taking a unique approach to AI by developing generative AI models tailored to address specific enterprise problems, focusing on selling productivity rather than language models directly. They have introduced case summarization and text-to-code capabilities powered by their generative AI models, while also partnering with Nvidia and Accenture to help enterprises develop their own generative AI capabilities. ServiceNow's strategy addresses concerns about data governance and aims to provide customized solutions for customers. However, cost remains a challenge for enterprises considering the adoption of generative AI models.
Nvidia's strategic partnership with VMware in launching the Private AI Foundation could make VMware/Broadcom a better AI stock to buy than Nvidia, as it combines cloud computing infrastructure with semiconductors necessary for generative AI chips.
By 2030, the top three AI stocks are predicted to be Apple, Microsoft, and Alphabet, with Apple expected to maintain its position as the largest company based on market cap and its investment in AI, Microsoft benefiting from its collaboration with OpenAI and various AI fronts, and Alphabet capitalizing on AI's potential to boost its Google Cloud business and leverage quantum computing expertise.
Google is aiming to increase its market share in the cloud industry by developing AI tools to compete with Microsoft and Amazon.
MSCI is expanding its partnership with Google Cloud to utilize generative AI for investment advisory purposes, aiming to provide investors with enhanced decision-making capabilities, deep data-driven insights, and accelerated portfolio implementation in areas such as risk signals, conversational AI, and climate generative AI.
SAP and Google Cloud have expanded their partnership to bring generative AI-powered solutions to industries such as automotive and sustainability to help improve business decision-making and enhance sustainability performance.
Nvidia and Google Cloud Platform are expanding their partnership to support the growth of AI and large language models, with Google now utilizing Nvidia's graphics processing units and gaining access to Nvidia's next-generation AI supercomputer.
Artificial intelligence (AI) leaders Palantir Technologies and Nvidia are poised to deliver substantial rewards to their shareholders as businesses increasingly seek to integrate AI technologies into their operations, with Palantir's advanced machine-learning technology and customer growth, as well as Nvidia's dominance in the AI chip market, positioning both companies for success.
Google Cloud CEO Thomas Kurian spoke at a cloud computing conference held by the company in 2019, highlighting the deepening partnership between Club holdings Nvidia and Alphabet as a win for both technology giants in the race to dominate artificial intelligence.
The rise of artificial intelligence (AI) is a hot trend in 2023, with the potential to add trillions to the global economy by 2030, and billionaire investors are buying into AI stocks like Nvidia, Meta Platforms, Okta, and Microsoft.
Google Cloud is heavily investing in generative AI, leveraging its innovations in Tensor Processing Units (TPUs) to provide accelerated computing for training and inference. They offer a wide range of foundation models, including PaLM, Imagen, Codey, and Chirp, allowing for customization and use in specific industries. Google Cloud's Vertex AI platform, combined with no-code tools, enables researchers, developers, and practitioners to easily work with generative AI models. Additionally, Google has integrated their AI assistant, Duet AI, with various cloud services to automate tasks and assist developers, operators, and security professionals.
Nvidia announced partnerships with Indian conglomerates Reliance Industries and Tata Group to develop cloud infrastructure, language models, and generative applications, deepening its presence in India's emerging AI ecosystem.
AI may be the biggest technological shift since the internet, and three stocks to buy and hold if this prediction holds true are Alphabet, Microsoft, and Amazon, while caution is advised for Nvidia due to its valuation.
Nvidia and Amazon, both of which recently underwent stock splits, are positioned for long-term growth in the AI industry due to their focus on infrastructure and strong economic moats, with Amazon being the safer pick due to its diversified business model and cost-cutting efforts.
Google Cloud's CEO, Thomas Kurian, stated that the company's latest AI products, Duet AI in Workspace and Vertex AI, have the potential to revolutionize the market and bring AI capabilities to every department and industry, similar to how Google simplified access to the internet.
As the cloud market continues to grow, some customers are questioning the cost and value of cloud-based infrastructure services, with concerns over hidden expenses, management challenges, and a lack of expected cost savings. Additionally, the rise of AI and the need for infrastructure for AI model training has shifted investment priorities away from server fleets and other projects.
ServiceNow, a leader in enterprise software and cloud computing, has had impressive gains this year and is poised for continued growth as it enters a cup base with a potential buy point, boasting strong financial performance and introducing new initiatives in artificial intelligence.
Nvidia, known for developing hardware and software for AI models, is the "picks-and-shovels play" of the AI industry, according to Shark Tank's Kevin O'Leary, despite the stock's high valuation. O'Leary believes Nvidia is the company best positioned to capitalize on the trillion-dollar AI market.
Microsoft is experiencing a surge in demand for its AI products in Hong Kong, where it is the leading player due to the absence of competitors OpenAI and Google. The company has witnessed a sevenfold increase in AI usage on its Azure cloud platform in the past six months and is focusing on leveraging AI to improve education, healthcare, and fintech in the city. Microsoft has also partnered with Hong Kong universities to offer AI workshops and is targeting the enterprise market with its generative AI products. Fintech companies, in particular, are utilizing Microsoft's AI technology for regulatory compliance. Despite cybersecurity concerns stemming from China, Microsoft's position in the Hong Kong market remains strong with increasing demand for its AI offerings.
IBD Stock Analysis: ServiceNow, an enterprise software maker, is experiencing a boost in stock due to corporate interest in generative artificial intelligence, with its upcoming software platform update expected to act as a catalyst.
Analysts at Bernstein suggest that Microsoft's cloud-computing services for artificial intelligence have the potential to generate higher profits than originally anticipated.
Small and medium businesses adopting AI and cloud computing technologies are expected to drive significant gains in productivity and economic output in sectors such as healthcare, education, and agriculture, with projected benefits of $79.8 billion by 2030 in the US and $161 billion globally.
ServiceNow's latest release, Vancouver, incorporates artificial intelligence features such as Generative AI and robo-written summaries, along with the implementation of Zero Trust principles to boost security and expand its workflow capabilities to different departments.