Artificial intelligence emerges as a sweeping force, capable of seismic shifts in businesses.
The Metamorphosis of Nvidia (NVDA)
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The evolution of AI has sculpted Nvidia (NASDAQ:NVDA) into an entirely different entity, as seen in its recent earnings. Revenue in the data center segment surged, catapulting overall sales to $18.4 billion, marking a colossal 409% leap from the prior year. A stark contrast to the $3.6 billion reported in the comparable quarter of 2022, showing a mammoth triple-fold increase to $47.5 billion for the year. Notably, data center dealings constituted 83% of Q4 profits.
Just a decade ago, Nvidia’s Q4 sales stood at a meager $1.25 billion, with gaming GPUs accounting for about 86% of the total revenue. Even five years ago, gaming brought in 43% of Nvidia’s earnings. The realm of AI swept in, altering this landscape entirely. Presently, AI pervades all facets, including gaming, leading to a 56% surge in gaming sales as Nvidia integrates AI features into its products to enhance user experiences.
The AI Revolution at Palantir Technologies (PLTR)
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Palantir Technologies (NASDAQ:PLTR) has swiftly adopted AI, transitioning significantly since 2021. While AI barely merited mention in its early reports, recent documents showcase an AI-immersed ecosystem. PLTR has woven AI intricacies into its Gotham and Foundry platforms, amplifying data analytics for government and private sectors. Introducing the AI Platform (AIP), an AI-fueled business operating system that amplifies data processing, allowing comprehensive analysis of various media types.
With AIP’s advent, Palantir Technologies experienced a substantial upswing in U.S. commercial bookings, more than doubling to $343 million, with 103 deals exceeding $1 million attributing to AI. The ongoing AI integration foreshadows continued transformations for Palantir Technologies.
The AI Influence on Crowdstrike (CRWD)
The Ever-Present Power of AI in Crowdstrike’s Core
In the realm of cybersecurity, Crowdstrike (NASDAQ:CRWD) stands out not for a dramatic transformation brought on by artificial intelligence but rather for having AI ingrained in its DNA from the very beginning.
A Pillar of Innovation: Falcon Threat Assessment Platform
Founded as an AI cloud-scale cybersecurity firm, Crowdstrike launched its Falcon threat assessment platform, which turned out to be a pivotal growth engine for the company.
The Falcon platform boasts the capability to analyze trillions of events weekly, enabling the automatic prevention of threats in real time. This precision and continuous protection are made possible only through the integration of AI. As the Falcon platform accumulates more data, it steadily enhances its intelligence, establishing a network effect among its user base.
Continuous Evolution Through Data Integration
To enhance the threat assessment capabilities of the platform, Crowdstrike consistently incorporates new client data into its AI algorithm. The company implements a ‘land-and-expand’ sales strategy to attract new customers. Initially, customers are introduced to Falcon and then offered additional modules as their requirements evolve. Over time, clients tend to expand their usage to include multiple modules, driving the growth of annual recurring revenue due to the subscription-based model.
AI as an Enabler, Not a Transformer
AI does not merely transform Crowdstrike; it permeates the essence of the cybersecurity firm. The persistent integration of AI into its operations expands the utility and effectiveness of Crowdstrike over time.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
