We talked last week about earnings of six of the seven AI kings.
The seventh, Nvidia comes later this month.
And remember, it was two years ago in Nvidia’s May earnings call that Jensen Huang shocked the world, declaring “the beginning of a major technology era.” He told us there was a “rebirth of the computer industry” underway, where “AI has reinvented computing from the ground up.”
And he told us there was a “retooling” going on across the economy, the beginning of a 10-year transition of the world’s $1 trillion data center, to accelerated computing.
And he had the numbers to back it up. They grew revenues by 19% that quarter, from just the prior quarter (!), with the outlook to grow over the next quarter by 52% (shockingly huge).
As you can see in the chart, this was the beginning of Nvidia transforming itself into an AI company (growing data center business from 60% of the entire Nvidia business, to now nearly the entire Nvidia business).
With that said, as we’ve discussed here in my daily notes, while the AI infrastructure boom in demand continues, the Nvidia growth rate is constrained by supply.
Meanwhile, there is another company that is beginning to put up Nvidia like growth numbers, after finding a transformational AI strategy within its existing business. It’s Palantir.
And it’s all about this chart …
They reported this afternoon — growing U.S. commercial revenue by 19% from the prior quarter, and guiding around 70% year-over-year growth for 2025. That’s a doubling of the growth rate for this time last year — so growth is accelerating.
Palantir’s new commercial business called the Artificial Intelligence Platform (AIP) has only been in existence two years, and is just now taking hold, as (mainly U.S.) companies are scrambling to figure out how to integrate generative AI into their businesses.
And Palantir has become the dominant player in solving that problem – putting enterprise customers through a short boot camp, which results in a product, and they’re into production within weeks. And that translates into multi-million dollar contracts for Palantir.
For this stage of the technology revolution (deploying genAI across enterprises), it’s very early.