AI growth may disappoint. I get that NVDA is off the charts YoY. But the expectation for the other majors is 8% growth. Apple has problems in China.
This is not as good as the dot com days. Far from it.
Have AI sales pretty much peaked? With a meager growth rate of 8%?
Chicken eggs in this basket might be overrated.
This is the early days, first you have to build it before the others can make money on it. I suspect you will see the others will start going as AI progresses. Look at Meta, they are forecasted to grow 26% in Revenue and 47% in earnings this quarter. That is huge growth for a company that big.
Andy
FB/Meta locked me out on April 1 from running ads. The AI could not figure it out. The techs could not figure it out because they no longer can see anything.
Turned out I bought a new cellphone. The new hardware signaled FB security that a hacker was trying to run ads. My FB account was restricted from running ads.
Half the time my ads were down anyway because AI called my art “adult content”. There are no human bodies in my art.
I guess if you can ignore who is restricted from running ads you can expect growth. We will see.
Meta’s last quarter was fantastic. That does not guarantee this quarter. Earnings are supposed to be lumpy.
You need a MUCH bigger hammer to pound FB into being really lumpy.
Your experience, while important to you, is still just anecdotal. It’s very important to look at what the analysts are expecting. Not because analysts are right, but because that is what everyone is gauging. Do those earnings look lumpy to you?
Andy
Yes, the earnings look very lumpy because Zuck took time to build AR/VR gaming platforms.
The last two quarters were a huge ride. Do not expect that this time.
FB is trying to build AI into its systems. The AI is failing.
What makes you think the AI is failing? I haven’t read anything on that.
Andy
You wont read anything particular about it.
FB has cut off all communications between its staff and the public for error reporting. AI acts as a receptionist that just puts people on the long finger. The entire organization is nonresponsive.
I do not think it is the ruin of FB. Marginally it should trouble the company. Growing pains.
We need to see the results.
Either way 200% plus growth can not be kept up.
Perhaps one more quarter of 200% growth only compared to the last year when Zuck spent all the money on R&D.
