#capital-expenditure

#capital-expenditure

IBM CEO Arvind Krishna does not see the current AI wave as a bubble. In The Verge's Decoder podcast, he argues that generative AI and large language models represent a structural technological shift, especially in the business world. According to Krishna, AI is not growing on speculation, but on actual value creation. While he believes the technology is sustainable, he also sees a notable financial threat: the enormous investments in AI data centers are developing at a pace that is difficult to sustain economically.

Darden reported Q1 revenue of $3.04 billion, missing the $3.07 billion estimate, while EPS of $1.97 fell short of the $2.02 consensus. The company still posted 4.7% same-restaurant sales growth and 24.5% net income growth year over year. Olive Garden generated $1.30 billion in revenue during the quarter, and LongHorn added $776 million. CEO Rick Cardenas said the company had "a strong start to the fiscal year with same-restaurant sales and earnings growth that exceeded our expectations."

NVIDIA has experienced explosive growth, becoming the largest publicly traded company with a market cap of $4.4 trillion, propelled by rising AI technology investments.

"We're in a tight demand supply environment and given that revenues are correlated with the timing of deployment of new capacity, we could see variability in cloud revenue growth rates depending on capacity deployment each quarter."