NVIDIA's AI core position highlighted! Former Google CEO reveals $300 billion investment blueprint, Goldman Sachs supports AI revenue prospects

According to the financial news app Zhitong Finance, former Google CEO Eric Schmidt shared his insights on the stock market during a lecture at Stanford University. While not providing investment advice, Schmidt pointed out that large tech companies are planning massive investments in NVIDIA (NVDA.US), especially in the construction of artificial intelligence data centers, with estimated costs possibly reaching up to $300 billion.

In a later deleted video, Schmidt stated, "I am in talks with large companies, and they tell me that they urgently need $20 billion, $50 billion, or even $100 billion." He also revealed that he is a close friend of OpenAI CEO Sam Altman.

Schmidt emphasized that a significant portion of these massive investments will flow to NVIDIA, whose data center AI chips dominate the market and have achieved over 200% revenue growth for three consecutive quarters. Meanwhile, Google's Tensor Processing Unit (TPU) chips, although potentially competitive with NVIDIA, are still in the early stages.

Schmidt hinted that if the full $300 billion flows to NVIDIA, investors should know how to react in the stock market. However, he explicitly stated, "This is not a stock recommendation." Schmidt did not disclose whether he holds NVIDIA stock.

Schmidt, who served as Google CEO from 2001 to 2011 and remained a board member until 2019, requested the video to be deleted because he inaccurately mentioned Google's work culture during the lecture. Nevertheless, his candid remarks revealed NVIDIA's rise in the field of artificial intelligence and its core position in the generative AI trend.

Despite NVIDIA's soaring demand, Wall Street questions whether this chip manufacturer's top customers are overinvesting in AI infrastructure. NVIDIA will report quarterly earnings on August 28, providing the latest market updates.

Schmidt believes that while NVIDIA will not be the sole winner in the field of artificial intelligence, there are not many other choices. He pointed out that large companies that can invest more funds in NVIDIA chips and data centers will gain a technological advantage. Schmidt also mentioned that six months ago, he was confident that the gap was narrowing, so he invested heavily in small companies, but now he is less certain.

Meta CEO Mark Zuckerberg's company has purchased about 600,000 NVIDIA GPUs, and Meta's next-generation models will require approximately 10 times the computing power. In addition, Altman is collaborating with Microsoft, planning to invest $100 billion to build an artificial intelligence data center called "Stargate."

Schmidt also mentioned that competitors find it difficult to catch up with NVIDIA because many of the most important open-source tools used by AI developers are based on the company's CUDA programming language. AMD's translation of NVIDIA's CUDA code into its chip software "does not work yet."

Schmidt founded the venture capital firm Innovation Endeavors in 2010 and currently holds approximately 147 million shares of Google stock, valued at around $24 billion. Besides investing in startups, he is also a philanthropist and provides advice to multiple government technology committees After an in-depth analysis of NVIDIA and its role in the field of artificial intelligence, let's shift our focus to Wall Street's perspective to gain broader industry insights. Goldman Sachs, as one of the world's leading investment banks, provides authoritative views on current market trends. Following an analysis of second-quarter earnings reports, Goldman Sachs points out that artificial intelligence (AI) is not only a focus of tech giants but has also become a core part of strategic planning for businesses across various industries.

Here is a summary of Goldman Sachs' insights on the application and outlook of artificial intelligence in the latest earnings reports of some well-known companies on Wall Street:

• Amazon (AMZN.US) highlighted the continued growth of generative and non-generative AI workloads, demonstrating the key role of AI in driving innovation in its business.

• BlackRock (BLK.US) observed strong demand in the artificial intelligence data center and energy transition sectors, emphasizing the importance of infrastructure investments required for AI technology implementation.

• Visa (V.US) expressed full commitment to the next generation of artificial intelligence, aligning with their decade-long commitment to advancing in the field of predictive artificial intelligence.

• Bank of America (BAC.US) showcased the significant potential of AI in enhancing customer service quality by providing over 6 million AI-driven insights to financial advisors.

• RTX Corporation (RTX.US) plans to increase over 30 AI and deep learning use cases to enhance productivity and cost savings, demonstrating a firm commitment to digital transformation.

• T-Mobile US, Inc. (TMUS.US) recognizes that artificial intelligence is a matter of widespread concern for customers and observes ambitious advancements by large enterprises in this field.

These viewpoints not only reflect the penetration and application of AI technology in various industries but also reveal a common understanding among businesses regarding leveraging AI to drive growth and innovation. With the continuous advancement of AI technology, it will continue to serve as a key driver for enterprise transformation and market development.

For investors looking to incorporate the AI sector into their investment portfolios, they may consider some exchange-traded funds aimed at providing investment opportunities in this field, such as the Artificial Intelligence & Tech ETF (AIQ.US), Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ.US), ALPS Disruptive Technologies ETF (DTEC.US), First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT.US)