It is earnings season and a ton can be learned by listening to the the earnings calls. The following are just a few tidbits that are relevant to AI:
Networking infrastructure business is booming thanks to 5G. Their business in this domain is growing at a 40% CAGR. Revenues from Mobileye (AI accelerators for automotive applications) grew 22% last year. They see AI data center silicon opportunity to reach $10B by 2023.
Commercial Cloud revenue was $11 billion, growing nearly 40% compared to last year. Revenue from Azure cloud service alone rose 64%. Microsoft is investing $1 billion in OpenAI to support building artificial general intelligence (AGI) capabilities. The ultimate goal is to develop hardware and software platform in Azure to scale AGI.
AWS revenues reached $8.4B in the quarter. The growth slowed to 37% after topping 40% in previous quarter.
Semiconductor Industry Slowdown:
According to Gartner, semiconductor industry revenue is expected to drop 10% ($429B) this year. Worldwide economic slowdown, memory price erosion, and China-U.S. trade war to blame.