Latest news with #GPUs
Time of India
11 hours ago
- Business
- Time of India
India Inc's AI reality check: Why 92% still struggle to scale AI
Only BFSI (71%) and ITES (80%) show signs of AI maturity — but even they face integration and governance and retail sectors have >60% AI experimentation, but governance, ethics, and backend integration stall AI being a boardroom buzzword, only 8% of enterprises have realized business-scale AI value. AI might be the star of corporate town halls and keynote speeches, but behind the curtains of glossy brochures and tech summits lies an inconvenient truth: the vast majority of Indian enterprises are nowhere close to AI maturity. According to the ETCIO Intelligence Report AI Playbook – GPUs, Strategies & Readiness Index 2025, a staggering 92% of organizations remain stuck in pilot or exploratory phases. Only a slim 8% have fully implemented AI initiatives. This discrepancy reveals a telling reality—while boardrooms are bullish about AI's potential, operationalizing it at scale remains an uphill task. For a quarter of surveyed firms, AI remains an abstract concept—a buzzword to explore rather than a tool to deploy. Pilot paralysis: From proof of concept to proof of value What's keeping India Inc from achieving AI lift-off? At the heart of the issue lies an ROI dilemma. AI pilots, often built around automation or chatbots, fail to deliver tangible business impact. 'Boards demand measurable business value,' the report notes, 'but most AI efforts focus on narrow use cases with limited bottom-line value.' In response, many CIOs are shifting their KPIs from 'proof of concept' to 'proof of value,' with a sharper focus on metrics like Return on Employee (RoE). 'AI has moved beyond proof of concept - it's now about proof of value. With data at its core, the true success metric is ROE: Return on Employee, where enhanced productivity and smarter efficiency reveals AI's real impact,' says Rakesh Bhardwaj, Group Chief Information Officer, Lupin. The infrastructure conundrum: Legacy systems as a bottleneck India's digital backbone—comprising legacy ERP, SCADA, MES, and siloed data systems—is not AI-ready. In manufacturing, for instance, only 57% of firms report any form of AI adoption. Even among these, most remain confined to pilot projects, thanks to fragmented operational technology and poor data standardization. The BFSI sector leads India's AI journey in terms of adoption maturity. Banks and insurers are embedding AI into fraud detection, underwriting, and customer service. But deeper integration is still constrained by legacy systems and high implementation costs. 'AI adoption in BFSI is not just about improving efficiency. It is redefining resilience, security, compliance and customer experience at scale,' says Sampath Manickam , Chief Technology Officer, National Stock Exchange of India. 'As we integrate AI-driven solutions, the emphasis must remain on ethical innovation, regulatory compliance and long-term value creation.' In retail and consumer goods, the maturity is mixed. While digital-native firms and FMCG giants leverage AI for personalization and supply chain visibility, traditional retailers are still stuck on basic digital transformation journeys. Data privacy and ERP integration issues loom large. In healthcare and pharma, AI use cases are growing—from diagnostics and imaging to drug discovery. However, full-scale adoption is rare, and ethical concerns around bias and explainability are front and center. ITES players show relative maturity. Roughly 60% have implemented AI for customer service automation, IT ops, or HR analytics. But only 8% have embedded AI into core functions. The rest remain tactical, often boxed into non-core deployments due to legacy constraints and unclear ROI. Talent deficit vs tool overload Another major hurdle? – People. Despite the explosion of AI platforms and APIs, there is a severe shortage of skilled professionals—particularly AI engineers, data scientists, and MLOps experts. 'There is a huge shortage of skilled talent because modern education is unable to keep up with the speed of change,' says Priya Dar, CIO, Valvoline Cummins . 'We are not experimenting enough and limitations of industry-specific tools lead to customizations that need skills, time, and money. What we are doing is simple—upskilling, leaning on open source, and outsourcing some innovation to smaller partners working on specific use cases.' Organizations are responding with hybrid strategies: reskilling programs, partnerships with academic institutions, and tapping global talent pools via remote work. 'Our leadership emphasizes innovation, operational excellence, and customer-centricity as core pillars of our growth strategy,' adds Kavita Bijlani, Head of IT & RAD, Bausch + Lomb. 'We are up-skilling and re-skilling our employees by rolling out training programs on AI/ML through virtual platforms. To overcome local shortages, we are tapping into global and regional talent pools.' Integration complexity: The silent killer Even when talent and tools are available, most AI projects flounder during integration. ETCIO Intelligence survey revealed that poor post-deployment support and a lack of plug-and-play capabilities remain key friction points—particularly in sectors like BFSI and healthcare, where compliance demands are non-negotiable. As Anand Sinha, CIO, Birlasoft, explains: 'Organizations address the shortage by upskilling existing staff, recruiting from diverse backgrounds, and using global remote talent… Automation and low-code AI tools are adopted to reduce reliance on specialists.' Who's Winning and Who's Lagging? A Sectoral Snapshot ITES (80%) and BFSI (71%) lead due to digital maturity and strong risk/compliance needs. Healthcare (70%) is gaining traction in diagnostics and drug discovery, but lags in AI governance. Retail (61%) shines in front-end CX but falters on backend integrations. Manufacturing (57%) struggles with data quality and fragmented tech environments. From projects to platforms: Global lessons for India Inc The report emphasizes that successful AI transformation isn't about isolated pilots—it's about 'platformization'. Giants like JPMorgan (COIN platform) and Siemens (AI-augmented digital twins) show the way. Indian firms must follow suit by institutionalizing AI Centers of Excellence, building explainable AI systems, and investing in scalable data infrastructure. To paraphrase Rucha Nanavati of Mahindra & Mahindra: 'AI has moved from curiosity to boardroom mandate. The challenge now is not in adopting AI—but in delivering on its promise.' The next 24 months represent a defining window. For India Inc., this is the moment to evolve from pilot purgatory to platform-powered performance. The age of AI has begun—now it's time to make it real. The AI Playbook | ET CIO
Yahoo
2 days ago
- Business
- Yahoo
History Says Now Is an Excellent Time to Buy Nvidia Stock
Nvidia's business is still growing at a rapid pace. Data center buildouts are set to rise 150% in four years, according to one projection. The stock isn't cheap but trades at a discount to its historical levels. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) stock has been the one that got away for many investors. I am also a part of this group, as I owned the stock from early 2023 to mid-2023 before selling shares. I eventually got back into Nvidia stock in late 2024 and have made a solid profit since then. This illustrates a valuable lesson: Just because you missed an initial run-up in the stock doesn't mean it's too late to buy now. I think Nvidia could still be an excellent buy now, and some historical values back that claim up. Nvidia is a company focused on graphics processing units (GPUs). It pursues all avenues that bolster its GPU dominance, including software and other infrastructure necessary to support GPUs. GPUs are a different style of computing unit, as they can process multiple calculations in parallel rather than just one. This ability gives them an edge in tasks that require high-powered computing, such as gaming graphics (their original purpose), cryptocurrency mining, engineering simulations, drug discovery, and their most important use case yet: artificial intelligence training. The AI arms race caused Nvidia's stock to boom because every AI hyperscaler used Nvidia GPUs to train and run their models. This demand has persisted for longer than most investors thought, and it doesn't look to be slowing anytime soon. In Q1 FY 2026 (ending April 28), Nvidia's revenue rose an impressive 69% year over year to $44 billion. That figure was impacted by the U.S. government's decision to ban the sale of H20 chips in China, which also affected Q2's guidance. Despite that headwind, Nvidia is still expected to grow revenue by 50%. So, even without China, Nvidia is still posting impressive growth. Furthermore, Europe has largely been asleep at the wheel while China and the U.S. are in an AI arms race. However, that looks like it's changing, as Nvidia has announced that multiple AI "factories" (data centers filled with Nvidia GPUs) are under construction in Europe. This could boost Nvidia's growth, propelling it much higher over the next few years. This vision backs up a third-party projection that Nvidia cited during its 2025 GTC event. The projection claimed that worldwide data center construction topped $400 billion in 2024 and could rise to $1 trillion by 2028. During FY 2025 (which encompasses most of 2024), Nvidia generated $115 billion from data center GPU sales. If this spending projection comes true and Nvidia maintains its market share of those capital expenditures, Nvidia's stock could have a ton of upside. But there are also signs that Nvidia's stock is a great buy compared to historical levels. 2025 is shaping up to be very similar to 2024 for Nvidia's stock. During 2024, most investors were convinced that analysts were overprojecting earnings, so it traded for a relatively low forward price-to-earnings (P/E) ratio during the year's first half. Then, investors realized that this growth was real and would extend well into the following year, so the price shot up and Nvidia traded in the mid-40s forward P/E range. That same thing is happening right now, as Nvidia's forward P/E ratio is starting to creep up, although it still has a ways to go before it reaches the mid-40s level. If this occurs, Nvidia will give investors a solid profit from now until the end of the year. However, I think the future is still incredibly bright for Nvidia, as we haven't scratched the surface of the required computing capacity to operate in an AI-first society. This will fuel Nvidia's stock for years to come, making it an excellent buy-and-hold for the long term. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. History Says Now Is an Excellent Time to Buy Nvidia Stock was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
2 days ago
- Business
- Globe and Mail
Think It's Too Late to Buy Nvidia Stock? Here's the Biggest Reason Why There's Still Time.
Nvidia 's (NASDAQ: NVDA) stock price growth has slowed in 2025 (it's up only 8% so far), but it continues to beat the market, which is up only 2.1%. Earlier in the year, investors following Nvidia expressed concerns about multiple issues, including a new Chinese artificial intelligence (AI) model that worked using less-expensive (and fewer) chips to process its calculations, as well as changing regulatory policies that could curtail Nvidia's exports to China. Nvidia remains one of the hottest stocks on the market, and even though it's up roughly 1,470% over the past five years, it's not too late to buy. Here's why. The opportunity is exploding Nvidia stock was a winner even before generative AI took off when ChatGPT launched at the end of 2022. It was already successful due to its high-powered graphics processing units (GPUs) that were needed for gaming as well as cryptocurrency mining, but it wasn't so well-known outside of those industries. It's now skyrocketing because generative AI needs powerful GPUs, too, and Nvidia is the leader. With nearly every large tech company in the race to release competitive AI platforms, Nvidia's business has been on fire. This growing demand is expected to continue, largely because Nvidia's products are capable and versatile. New opportunities continue to pop up in AI, including with data centers. These AI companies need tons of power for AI's computational needs, and they need data centers to manage that workload. Nvidia's revenue increased 69% year over year in the fiscal 2026 first quarter (ended April 27), and data center segment revenue outpaced it, increasing 73%. The data center opportunity will keep growing along with AI. According to Fortune Business Insights, the data center market was $243 billion in 2024, and it's expected to increase at a compound annual growth rate (CAGR) of 11.7% through 2032, reaching $585 billion. This is just the beginning for AI, and Nvidia is well-positioned to tap into that high growth. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
2 days ago
- Business
- Yahoo
54% of Nvidia's Q1 Revenue Came From 4 Mystery Customers -- Who Could They Be?
Nvidia supplies the most sought-after data center chips in the world for artificial intelligence (AI) development. The majority of Nvidia's revenue now comes from its data center business, but its future success rests on just a handful of key customers. Nvidia's highly concentrated revenue base could pose a risk for investors in the future, but AI data center spending still has room to grow. 10 stocks we like better than Nvidia › Most artificial intelligence (AI) models are trained and then deployed in data centers, which are filled with thousands of specialized chips called graphics processing units (GPUs). Most AI developers don't have the financial resources to build that infrastructure themselves, but they can rent it from a handful of technology giants that operate hundreds of centralized data centers all over the world. Those tech giants typically buy most of their GPUs from Nvidia (NASDAQ: NVDA), which supplies the best AI hardware in the industry. The chipmaker continues to experience more demand than it can fill, which is driving a surge in its revenue and earnings. In fact, Nvidia has added a staggering $3 trillion to its market capitalization since the beginning of 2023, and it's now the second most valuable company in the world. However, the fact that only a handful of companies can afford to build the best AI infrastructure isn't a good thing for Nvidia. During the fiscal 2026 first quarter (ended April 27), more than half of the company's total revenue came from just four unnamed customers, which means a pullback in AI infrastructure spending from any one of them could threaten the chip giant's incredible run of growth. Let's take a look at who those top customers might be, so we can assess the sustainability of Nvidia's data center business. Nvidia generated $44.1 billion in total revenue during the fiscal 2026 first quarter. The data center segment was responsible for $39.1 billion of that figure, so AI GPUs are now the company's most important product by far. While Nvidia doesn't disclose who its customers are, it does report some data on the concentration of its revenue base. During the first quarter, just four mystery customers alone accounted for 54% of the company's $44.1 billion in sales: Customer Proportion of Nvidia's Q1 Revenue Customer A 16% Customer B 14% Customer C 13% Customer D 11% Data source: Nvidia. That means Customer A spent around $7 billion with Nvidia during the first quarter, and there are only a handful of companies in the world with enough financial resources to keep that up. As I mentioned earlier, this creates a risk for Nvidia because if Customer A were to reduce its capital expenditures, it would be very hard for the chipmaker to replace that revenue. It's impossible to identify Nvidia's top customers with certainty, but we can make some pretty reasonable assumptions based on public forecasts issued by some of the world's biggest tech companies: Amazon (NASDAQ: AMZN) said it will spend around $105 billion on AI data center infrastructure this calendar year. Microsoft (NASDAQ: MSFT) said it is on track to spend over $80 billion on AI infrastructure during its fiscal year 2025 (which ends on June 30). Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) plans to spend $75 billion on AI infrastructure this calendar year. Meta Platforms (NASDAQ: META) says it will spend up to $72 billion to fuel its AI ambitions this year (a figure it recently increased from $65 billion). Several other AI companies have smaller -- but not insignificant -- capital investments in the pipeline. Oracle, for example, recently told investors it will increase its data center spending to over $25 billion during its fiscal year 2026 (which just began on June 1). Then there are top AI start-ups like OpenAI, Anthropic, and Elon Musk's xAI, which also have very deep pockets. While all of the above companies are developing AI for their own purposes, Amazon, Microsoft, and Alphabet are also three of the world's largest providers of cloud services. In other words, they build the centralized data centers I mentioned earlier, which they rent to AI developers for a profit. Despite the exorbitant amount of AI infrastructure spending on the table this year, Nvidia CEO Jensen Huang thinks this is just the beginning. He predicts capital expenditures could top $1 trillion per year by 2028, because every new generation of AI models requires more computing capacity than the last. For example, Huang says some of the newest "reasoning" models consume up to 1,000 times more computing capacity than their predecessors. These models spend time "thinking" in the background before rendering responses, ensuring they produce more accurate information than traditional large language models (LLMs), which generate fast, one-shot responses. Nvidia's Blackwell and Blackwell Ultra GPU architectures were designed to meet the growing demand for inference capacity from reasoning models, which is why chips like the GB200 and GB300 are the most sought-after in the world. If Huang is right about the trajectory of AI infrastructure spending, then the risks associated with Nvidia's highly concentrated revenue probably won't materialize for at least a few more years. Since Nvidia stock is trading at a relatively attractive valuation right now, those potential risks probably shouldn't keep investors from buying it right now. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 54% of Nvidia's Q1 Revenue Came From 4 Mystery Customers -- Who Could They Be? was originally published by The Motley Fool
Globe and Mail
2 days ago
- Business
- Globe and Mail
History Says Now Is an Excellent Time to Buy Nvidia Stock
Nvidia (NASDAQ: NVDA) stock has been the one that got away for many investors. I am also a part of this group, as I owned the stock from early 2023 to mid-2023 before selling shares. I eventually got back into Nvidia stock in late 2024 and have made a solid profit since then. This illustrates a valuable lesson: Just because you missed an initial run-up in the stock doesn't mean it's too late to buy now. I think Nvidia could still be an excellent buy now, and some historical values back that claim up. Nvidia's GPUs have dominated the AI arms race Nvidia is a company focused on graphics processing units (GPUs). It pursues all avenues that bolster its GPU dominance, including software and other infrastructure necessary to support GPUs. GPUs are a different style of computing unit, as they can process multiple calculations in parallel rather than just one. This ability gives them an edge in tasks that require high-powered computing, such as gaming graphics (their original purpose), cryptocurrency mining, engineering simulations, drug discovery, and their most important use case yet: artificial intelligence training. The AI arms race caused Nvidia's stock to boom because every AI hyperscaler used Nvidia GPUs to train and run their models. This demand has persisted for longer than most investors thought, and it doesn't look to be slowing anytime soon. In Q1 FY 2026 (ending April 28), Nvidia's revenue rose an impressive 69% year over year to $44 billion. That figure was impacted by the U.S. government's decision to ban the sale of H20 chips in China, which also affected Q2's guidance. Despite that headwind, Nvidia is still expected to grow revenue by 50%. So, even without China, Nvidia is still posting impressive growth. Furthermore, Europe has largely been asleep at the wheel while China and the U.S. are in an AI arms race. However, that looks like it's changing, as Nvidia has announced that multiple AI "factories" (data centers filled with Nvidia GPUs) are under construction in Europe. This could boost Nvidia's growth, propelling it much higher over the next few years. This vision backs up a third-party projection that Nvidia cited during its 2025 GTC event. The projection claimed that worldwide data center construction topped $400 billion in 2024 and could rise to $1 trillion by 2028. During FY 2025 (which encompasses most of 2024), Nvidia generated $115 billion from data center GPU sales. If this spending projection comes true and Nvidia maintains its market share of those capital expenditures, Nvidia's stock could have a ton of upside. But there are also signs that Nvidia's stock is a great buy compared to historical levels. Nvidia's stock is showing a similar pattern to 2024 2025 is shaping up to be very similar to 2024 for Nvidia's stock. During 2024, most investors were convinced that analysts were overprojecting earnings, so it traded for a relatively low forward price-to-earnings (P/E) ratio during the year's first half. Then, investors realized that this growth was real and would extend well into the following year, so the price shot up and Nvidia traded in the mid-40s forward P/E range. NVDA PE Ratio (Forward) data by YCharts That same thing is happening right now, as Nvidia's forward P/E ratio is starting to creep up, although it still has a ways to go before it reaches the mid-40s level. NVDA PE Ratio (Forward) data by YCharts If this occurs, Nvidia will give investors a solid profit from now until the end of the year. However, I think the future is still incredibly bright for Nvidia, as we haven't scratched the surface of the required computing capacity to operate in an AI-first society. This will fuel Nvidia's stock for years to come, making it an excellent buy-and-hold for the long term. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
