Investing

3 Mind-Blowing Stats That Could Send NVIDIA Shares to All-Time Highs

Eric Bleeker

Published: August 25, 2024 1:13 pm

NVIDIA (Nasdaq: NVDA) earnings week is here, with the company reporting on Wednesday after the bell. The company is expected to post $28.7 billion in revenues and $.64 per share of normalized earnings. Yet, how NVIDIA shares react come market open on Thursday will largely depend on commentary from the company. 

Investors will be closely watching for quotes from NVIDIA around the impact of delays shipping their next-generation Blackwell systems and demand trends NVIDIA is seeing across the AI space. In particular, NVIDIA is expected to spend time analyzing the ROI large customers are seeing from AI spend. 

The trillion-dollar question around AI is how much of current spending is driven by FOMO versus real use cases. Let’s look at some fascinating quotes from CEOs that could point toward real uptake of AI across the corporate world. 

Summary 

• Amazon’s CEO recently said that generative AI is saved the company 4,500 developer years on a single project. 
• Other mind-blowing stats are that Walmart rolled out a large data project where generative AI reduced the headcount needed by 100X and Accenture has seen generative AI sales already grow 7-fold from all of 2023. 
• If you’re looking for stocks that could see incredible gains from the next wave of AI growth, you’ll want to grab a complimentary copy of our brand-new “The Next NVIDIA” report. It features a software stock that will help companies build their own LLMs and we believe has 10X returns potential. 

Mind-Blowing Stat #1: Amazon CEO Says AI Saving 4,500 Years of Developer Work 

Amazon (Nasdaq: AMZN) CEO Andy Jassy recently took to LinkedIn to post some progress from the company around generative AI. The most impressive statistic he cited was around time savings upgrading applications:

“The average time to upgrade an application to Java 17 plummeted from what’s typically 50 developer-days to just a few hours. We estimate this has saved us the equivalent of 4,500 developer-years of work (yes, that number is crazy but, real).”

The estimated savings from efficiency gains works out to $260 million annually. Obviously, Amazon has a product – Amazon Q – Andy Jassy is promoting. But this stat shows the impressive gains generative AI can offer when rolled out to many jobs. 

Most studies on software development have shown between 20% and 50% productivity gains from developers who embraced generative AI tools. 

Mind-Blowing Stat #2: Walmart Project Would Require 100X the Headcount

Another stunning quote about the benefits of generative AI at scale came from Walmart‘s (NYSE: WMT) recent conference call:

“We’ve used Generative AI to improve our product catalog. The quality of the data in our catalog effects nearly everything we do from helping customers find and buy what they’re looking for to how we store inventory in the network to delivering orders. We’ve used multiple large language models to accurately create or improve over 850 million pieces of data and the catalog. Without the use of generative AI, this work would have required nearly 100 times the current headcount to complete and the same amount of time.” 

Walmart further said they’re building their own large language models and using generative AI to help sellers. One example of another major AI project at the company is their rollout of a deep learning recommendation model (DRLM) for product search. 

Overall though, this quote shows the kinds of massive efficiency gains companies with large amounts of data can leverage as use cases build across companies. 

Mind-Blowing Stat #3: Accenture’s AI Booking in 2024 Are Already 7X Larger than Last Year

Accenture (NYSE: ACN) reported its third-quarter earnings in June and reported that generative AI bookings have already passed $2 billion year-to-date. That number is still with another quarter to come in its fiscal year. For comparison, in the prior year, Accenture booked $300 million worth of generative AI sales:

“We also have leaned into the new area of growth, GenAI, which is comprised of smaller projects as our clients primarily are in experimentation mode. And this quarter, we hit two important milestones. With over $900 million in new GenAI bookings this quarter, we now have $2 billion in GenAI sales year-to-date. And we have also achieved $500 million in revenue year-to-date. This compares to approximately $300 million in sales and roughly $100 million in revenue from GenAI in FY ’23.”

As Accenture’s CEO Julie Spellman Sweet noted in the quote above, many of these engagements are still ‘experimentation.’ Companies have heard the ‘buzz’ around AI and are looking for help in how to leverage the technology in their business. Accenture used the example of the National Australia Bank, where it identified 200 generative AI use cases, of which 8 have gone into enterprise-grade pilots. 

If these pilots go well, you can see how it’s ‘win-win’ for Accenture and its customers. Accenture continues building out use cases to deploy and customers achieve significant cost savings. With so many generative AI projects in ‘experimentation,’ this segment could continue seeing explosive growth in the quarters to come. 

What Will NVIDIA Say on Wednesday?

Expect NVIDIA to highlight some customer stories that are similar to what you see above on Wednesday. None of the examples above are some ‘killer app’ that will cause AI-related revenue to explode in the quarters to come. 

However, they each illustrate how AI could continue to be deployed at scale across large companies in America. If AI is going to move beyond an ‘arm’s race’ based on its potential to the next game-changing technology, hundreds more examples like you read above will need to happen.