Supply and Demand Shift to Nvidia, Signalling Tremors in the AI Market

There is a growing consensus that AI technology investment has moved past the infrastructure building phase and into a stage of actual revenue generation. This means companies have begun to generate substantial sales by leveraging AI technology.

The recent strong performances of AI-related companies like Salesforce and CrowdStrike clearly demonstrate this turning point in AI monetization. These companies are receiving positive market reactions by offering new services or improving the efficiency of existing ones through AI.

Nvidia has successfully diversified its customer base by significantly expanding the revenue share from general enterprises beyond hyperscalers (large cloud service providers). Previously, it was widely believed that big tech companies accounted for most of Nvidia's orders.

According to Nvidia's recent announcement, the proportion of revenue from non-hyperscaler enterprises has expanded to 55% of total revenue. This shows a continuous upward trend compared to 42% in the previous quarter and 37% in the quarter before that. This strategy of broadening its customer base is expected to contribute to Nvidia's stable growth.

The memory semiconductor bottleneck is projected to last longer than expected. Nvidia anticipates the current bottleneck will continue until late next year.

SK Hynix Chairman Choi Tae-won further mentioned that the memory semiconductor bottleneck could extend until 2030. This is based on the prediction that demand for high-performance memory will increase long-term with the growth of the AI industry, requiring sustained attention to the relevant market.

Open models are cheaper to develop and use, allowing them to attract more users.

The spread of these open models ultimately drives demand for AI infrastructure. Through this, Nvidia intends to increase sales of its core hardware, such as GPUs, thereby strengthening its monopolistic position in the infrastructure market.

Especially after the export restrictions to China, Nvidia is expanding its support for open models as part of a strategic move to solidify its foundation in the global AI infrastructure market.

They analyzed that Nvidia already has high expectations, and as the top market capitalization stock, further sharp increases face technical burdens.

Although it has shown a recent surge, considering the current stock price level and high market valuation, it is likely to move within a certain range rather than experiencing a steep rise in the future.

Hugging Face is known to have had a security incident with OpenAI previously.

This acquisition is interpreted as Nvidia's intention to expand its reach into the software domain beyond its hardware-centric business. Through this, Nvidia is expected to further strengthen its influence across the entire AI ecosystem.

Members of the U.S. Federal Reserve (Fed) have expressed concerns about inflation and continued to make statements regarding the direction of monetary policy. 'President Hammer' argued that now is the time to raise interest rates and urged action.

Another Fed member, 'President Showmeade,' mentioned that inflation is too sticky, implying that inflationary pressures will not easily subside. Their remarks are interpreted as putting pressure on the market for an interest rate hike.

Chairman Powell's keynote address scheduled for today will be closely watched for remarks related to inflation and interest rate hikes. His statements are expected to be an important indicator for gauging the future direction of monetary policy.

It has been revealed that nuclear negotiations between the United States and Iran are virtually suspended. A White House spokesperson officially announced that negotiations are not currently underway.

The spokesperson added that the current situation will persist until the U.S. believes Iran is willing to engage in meaningful negotiations. This points to a lack of substantive action from Iran and reflects the U.S.'s skeptical view on resolving the nuclear issue.

The IPO countdown has begun for leading AI startup Anthropic. Anthropic is aiming for a listing by the end of September or early October and plans to hold an investor briefing in mid-September.

This IPO schedule precedes the U.S. midterm elections, which are set for November. As policy volatility could increase depending on the midterm election results, Anthropic's listing is expected to attract even more attention.

While this appears to be aimed at China, concerns are rising that it could significantly impact the manufacturing sector as a whole.

The move to extend tariff targets beyond semiconductor raw materials or components to final products is expected to cause considerable disruption in global supply chains. This could also lead to increased consumer prices within the U.S.

This consideration of measures is interpreted as a strong signal of the U.S.'s determination to curb the growth of advanced industries in specific countries amid intensifying technological rivalry. Related industries are keeping a close watch on policy changes.