2023 was undisputedly the year of Generative AI, but what impact has it had on the productivity and profitability of companies? Nasdaq earnings transcripts can give us a peak behind the curtain as execs quantify the effect of Generative AI on their operations through out the final quarter of 2023.
In summary:
It is driving product and business performance, accelerating the speed of game development, boosting creativity and innovation, and bringing bigger experiences to a global audience.
Recommendation AI systems powered by generative AI have improved engagement on platforms like Facebook and Instagram.
Generative AI is becoming a business imperative, with revenue from generative AI representing a substantial portion of semiconductor revenue.
It is also seeing increased interest and adoption, with organizations piloting or using it in production .
The RTX ecosystem is growing, with generative AI emerging as a key application for high-performance PCs.
Overall, generative AI is transforming industries and enabling new capabilities.
META
Date: 2023-10-25 | readability: 11.55 | 5 Day Performance: 0.58% | Sentiment: 2.56%
“Generative AI will increasingly be important going forward. I outlined our product roadmap earlier. And on top of that, we're also building foundation models like Llama 2, which we believe is now the leading open source model with more than 30 million Llama downloads last month.”
EA
Date: 2023-11-01 | readability: 11.73 | 5 Day Performance: 4.81% | Sentiment: 44.5%
“The definition of a game is also expanding beyond play as fans are watching, creating content, and making deep social connections in and around interactive experiences. How games are being made is changing as well. Advancements in Generative AI are accelerating the speed of development, boosting creativity and innovation, transforming what we can deliver, bringing bigger, broader games and experiences to an even larger global audience. The value and opportunity of delivering deeply interactive entertainment has never been greater. Our talented teams, industry leading technology, world-class IP, and growing global network of players position EA as a leader of the future of entertainment.”
WDAY
Date: 2023-11-28 | Readability: 12.38 | 5 Day Performance: 13.44% |Sentiment: 11.17%
“And finally, AI, and in particular, generative AI is becoming a business imperative. As a trusted partner and a market leader with over 65 million users under contract we can uniquely drive efficiencies and improve the employee experience.”
AVGO
Date: 2023-12-07 | readability: 10.18 | 5 Day Performance: 17.61% | Sentiment: -72.42%
“Revenue from generative AI in fiscal ‘23 reached 15% of semiconductor revenue, in line with our expectation. And moving on to fiscal ‘24, we forecast semiconductor solutions revenue to be up mid- to high-single-digit percent year-on-year. We expect revenue from generative AI to represent more than 25% of the semiconductor revenue, consistent with prior guidance, which more than offset the lack of growth from non-AI semiconductor revenue.”
EQIX
Date: 2023-10-25 | readability: 15.0 | 5 Day Performance: 6.95% | Sentiment: 8.6%
“On the AI front, we continue to cultivate and win significant opportunities across our existing customer base and with AI-specific prospects. A recent Gartner poll found 55% of organizations are in pilot or production mode with generative AI. We are seeing this manifest in accelerated interest from both enterprise customers and from emerging service providers looking to service this demand. We see strong similarities between the evolving AI demand and the multi-tiered architectures that have characterized the cloud build-out for the past eight years.”
NVDA
Date: 2023-11-21 |readability: 12.69 | 5 Day Performance: -4.25% | Sentiment: -11.7%
“The RTX ecosystem continues to grow. There are now over 475 RTX-enabled games and applications. Generative AI is quickly emerging as the new pillar app for high performance PCs. NVIDIA RTX GPUs to find the most performance AI PCs and workstations. We just released TensorRT-LLM for Windows, which speeds on-device LLM inference up by 4x.”
GOOG
Date: 2023-10-24 | readability: 12.02 | 5 Day Performance: -10.26% | Sentiment: 14.83% |
“It's all part of our focus on making AI more helpful for everyone, and we are making good progress across the four areas that we shared last quarter. First, improving knowledge and learning. This includes our work with the Search Generative Experience, which is our experiment to bring Generative AI capabilities into Search. We have learned a lot from people trying it, and we have added new capabilities, like incorporating videos and images into responses and generating imagery. We've also made it easier to understand and debug generated code.”
SNPS
Date: 2023-11-29 | readability: 11.72 | 5 Day Performance: -3.03% | Sentiment: 27.62% |
“AI is reshaping industries and providing breakthrough solutions for intractable challenges, like the 15% to 30% percent design resource shortage the semiconductor is facing this decade. We pioneered AI driven semiconductor design and are relentlessly advancing our AI capabilities so that we can drive step-up function improvement in our customers’ productivity and thus play a greater role in their success. Recently, at Microsoft's Ignite conference, we announced a breakthrough Generative AI capability for accelerating chip design, Synopsys.ai Copilot. The new capability is the result of a strategic collaboration with Microsoft to integrate Azure service that brings the power of GenAI into one of the most complex engineering challenges, the design process for semiconductors. The integration of GenAI across Synopsys.ai provides chip designers with collaborative capabilities that offer expert tool guidance, generative capabilities to enable RTL and collateral creation, and fully autonomous capabilities for workflow creation from natural language.”
ADBE
Date: 2023-12-13 | Readability: 12.04 | 5 Day Performance: -3.14% | Sentiment: 99.83%
“We take pride in being one of the most inventive, diversified, and profitable software companies in the world. We believe that every massive technology shift offers generational opportunities to deliver new products and solutions to an ever-expanding set of customers. AI and generative AI is one such opportunity and we've articulated, how we intend to invest and differentiate across, data, models, and interfaces. We have delivered against this strategy and I'm pleased that a number of our groundbreaking innovations, including our Firefly models and integrations across Creative Cloud, Liquid Mode and integrations across Document Cloud and AI services in our real-time Customer Data Platform and integrations in Experience Cloud, are now seeing tremendous usage by customers. We remain excited about the strategic opportunity with Figma, to jointly advance product design, accelerate collaborative creativity on the web, and redefine the future of creativity and productivity.”
5 Day Performance is the performance after the earnings call date
Sentiment score is financial sentiment,-100 to 100 calculated using Loughran-McDonald lexicon
Readability score is based on Flesch-Kincaide Grade Score, where the score equates to the grade level education required to under the text.
"Successful investing is about managing risk, not avoiding it." - Benjamin Graham