Microsoft, AMD results ‘gave more credence’ to AI monetization phase: Wedbush

The angst amongst investors of whether artificial intelligence monetization has gone beyond just a handful of companies should be put to bed based on results from companies like Microsoft (NASDAQ:MSFT) and AMD (NASDAQ:AMD), Wedbush Securities said.

“Over the last few weeks, we have also seen an acceleration of enterprises and CIOs from our customer/partner conversations heading down the strategic AI path, which all comes down to use cases and ROI for these budget dollars,” analyst Dan Ives wrote in an investor note.

Ives added that Microsoft’s results, along with those from AMD, “gave more credence to the AI monetization phase.” He urged investors to look at what Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), ServiceNow (NOW), Palantir (PLTR) and Microsoft said and said they should use the group “as the core barometers.”

“The underlying cloud strength from the likes of Microsoft, Google, and Amazon was rock solid with more enterprises heading down the cloud and AI path over the next 12 to 18 months,” Ives explained. “Further putting pieces in the AI puzzle for the Street, we saw massive AI strength from key software players ServiceNow and Palantir, which both play in the next stage of AI deployments for enterprises. On the semi front, AMD is now on the cusp of getting a piece of the growing AI $1 trillion of Cap Ex we expect to see over the next few years with the Godfather of AI Jensen and Nvidia leading the charge.”

Nvidia (NVDA) is slated to report its own quarterly results on August 28 and Ives said it will likely be another “drop the mic moment” for the Jensen Huang-led company.

A consensus of analysts expects the company will earn $0.64 per share on $28.54B in revenue.