A company called Nvidia makes special computer chips that help machines learn and think. Microsoft, another big company, uses a lot of these chips to make their products work better. Because Microsoft buys so many chips from Nvidia, they give them a lot of money. This article says that about one-fifth or 20% of the money Nvidia gets comes from Microsoft. Recently, the US government stopped selling these chips to some countries because they want to keep them safe. Some people think that if Nvidia keeps doing well, it might become more valuable than Microsoft soon. Read from source...
- The article title is misleading and clickbait. It suggests that Nvidia is Microsoft's top customer, which implies a direct business relationship, but the article does not provide any evidence or data to support this claim. In fact, Nvidia is a supplier of AI chips to Microsoft, not a direct customer. This difference is important because it affects the nature and extent of their partnership.
- The article also mentions that Nvidia accounts for a fifth of Microsoft's revenue, but does not specify whether this refers to total or net revenue. These are different measures of financial performance and can have significant implications for valuation and profitability. Using vague terms like "revenue" without clarifying the unit or basis of calculation is irresponsible journalism that misleads readers.
- The article then goes on to talk about Nvidia's potential to surpass Microsoft in market value, which is an irrelevant and speculative topic that has no bearing on the main story. This is a classic example of "fear of missing out" (FOMO) journalism that tries to generate interest and excitement by making bold claims without any substantiation or analysis.
- The article also fails to mention the recent U.S. government ban on AI chip sales to the Middle East, which is a major development that affects Nvidia's business and prospects. This omission suggests that the author is either unaware of this important issue or deliberately chose to ignore it in order to paint a rosy picture of Nvidia's future. Either way, this is a serious breach of journalistic ethics and professionalism.
There are several factors to consider when making an investment decision in the context of this article. First, it is important to note that Nvidia's revenue from Microsoft may be subject to fluctuations depending on the demand for AI chips and the performance of both companies. Second, the U.S. government's ban on AI chip sales to the Middle East could affect Nvidia's market share and profitability in that region. Third, Nvidia's potential surpassing of Microsoft in market value may indicate its growing dominance in the tech industry, but it also poses risks such as increased competition and regulatory scrutiny. Finally, the overall performance of both stocks depends on various macroeconomic factors, such as interest rates, inflation, and global trade tensions. Therefore, a prudent investor should weigh these factors carefully before making any investment decisions based on this article.