A new report says AI has brought trillions in fortunes to tech giants like Microsoft, Apple, and Amazon in the United States.
Many tech companies in the US have benefited from the ongoing AI explosion, increasing their market capitalization by trillions in a year. AI has helped US tech giants increase their valuations by $2.4 trillion, according to a report by venture capital firm Accel.
Tech giants enjoy AI boom
Excel publishes its annual euroscape reportFocusing on the benefits the use of AI can bring to tech companies. According to the report, many big companies are also involved apple inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), nvidia corporation (NASDAQ: NVDA), and Amazon.com Inc (NASDAQ: AMZN) surged 36% last year, adding $2.4 trillion. The report also highlights Nvidia’s entry into the $1 trillion market cap club. According to MarketWatch data, Nvidia is currently worth $1.12 trillion.
Nvidia has been one of the biggest beneficiaries of the current AI boom. The company is enjoying a great deal at the moment surge in demand And it recently predicted that its revenue for the quarter would reach $16 billion, an increase of 170%. The company also posted impressive figures for the second quarter of fiscal 2024. Nvidia announced revenue of $13.51 billion, up 88% from the previous quarter and 100% from the same period a year earlier. The figure is more than the $11.22 billion expected by analysts surveyed by Refinitiv. Additionally, Nvidia reported earnings per share of $2.7, far exceeding Refinitiv analysts’ estimate of $2.09. Morgan Stanley analysts have Said Nvidia will benefit greatly from the ‘massive change’ in AI.
Excel’s report also notes other benefits brought by the AI boom. For example, the report notes that it took only 18 months for the NASDAQ to return to 80% of its all-time high. The team says that after the 2000 financial crisis, it took 14 years to achieve this feat.
Furthermore, cloud giants prefer Oracle Corporation And Adobe Inc increased by 75%, registering a significant increase sales force And SAP SE, Collectively, these cloud companies added $1 trillion to their market cap and climbed nearly 40% in the past year.
AI Products and a ‘Reality Check’ Prediction
Since OpenAI launched ChatGPT, many tech giants have designed or are developing similar AI tools. Swedish fintech startup Klarna recently announced An image recognition tool that helps users identify goods for purchase. Users can get information about desired items by pointing their phones at the products.
Additionally, Microsoft introduced several AI products aimed at health care. Including Azure AI Health Bot, these tools help patients and health care workers improve the effectiveness and general delivery of health care.
Although most AI forecasts are bullish, some analysts predict reality check Next year. According to leading technology research firm CCS Insight, the interest and hype that AI currently enjoys will be replaced by practical challenges. CCS Insight believes that the costs and risks of AI will become more apparent. According to the firm’s chief analyst, while AI will help increase productivity levels, the cost of running applications using graphics processing units (GPUs) and concerns such as ethical problems and job displacement could become significant issues in 2024.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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