Did Elon Musk Just Give Nvidia Investors 40 Billion Reasons to Cheer?

When it comes to training generative AI models, Nvidia's (NASDAQ: NVDA) graphics processing units (GPUs) are hailed as the gold standard among industry experts. That's not exactly a novel conclusion considering the semiconductor powerhouse has amassed an estimated 90% or more of the GPU market.

The more subtle idea here is how exactly Nvidia built such a gigantic lead over the competition. While it does not explicitly specify which companies buy its GPUs, it's widely speculated across Wall Street that cloud hyperscalers Microsoft, Alphabet, and Amazon, as well as Meta Platforms are among Nvidia's largest customers.

Considering that these players are forecasting well in excess of $300 billion on AI infrastructure spending just this year, I wouldn't be shocked at all if these "Magnificent Seven" members are repeat customers of Nvidia.

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