đ Supermicro: Full Steam Ahead on NVIDIA Blackwell-Powered Data Centers
Welcome, AI & Semiconductor Investors,
Alphabet just wrapped 2024 with a blazing AI-fueled revenue push across Search, YouTube, and Cloud, setting a new bar for generative AI breakthroughs.
Stick around as we dive into AMDâs record-crushing Q4 powered by its bold AI acceleration roadmap and explore how Supermicro is driving the next wave of data center innovation with NVIDIA Blackwell.âletâs dig in.
What The Chip Happened?
âď¸Alphabetâs AI-Powered Surge: A 2024 Finale to Remember
đĽ AMD Fires Up Q4 with AI Acceleration Timeline!
đ Supermicro: Full Steam Ahead on NVIDIA Blackwell-Powered Data Centers
Read time: 7 minutes
Alphabet (NASDAQ: GOOG, GOOGL)
đ Alphabetâs AI-Powered Surge: A 2024 Finale to Remember
What The Chip: Alphabet just posted strong Q4 and full-year 2024 earnings, driven by double-digit growth across Google Search & YouTube, plus impressive gains in Google Cloud. Leadership in AIâspanning everything from generative models to advanced data center infrastructureâhelped push revenues to new heights.
Details:
đ¤ Robust Revenue: Q4 consolidated revenues jumped 12% year over year to $96.5B, with full-year revenues hitting $350B.
⥠Search Drives Growth: Google Search & other ads grew 13% to $54B this quarter as AI-powered features like AI Overviews and Circle to Search expanded usage.
âď¸ Cloud Ascending: Google Cloud revenues soared 30% to $12B, fueled by demand for core GCP services, AI infrastructure, and generative AI solutions. CEO Sundar Pichai remarked, âOur AI-powered Google Cloud portfolio is seeing stronger customer demand.â
đş YouTube Momentum: YouTube ads rose 14% to $10.5B, with more than $110B combined annual run rate between Cloud and YouTube at year-end.
đ Waymoâs Advances: Waymo clocked over 4M passenger trips, averaging more than 150,000 rides per week and expanding to new markets like Austin and Atlanta.
đ° High Margins & Higher Spend: Operating margin jumped to 32%, yet CapEx is slated to reach around $75B in 2025, primarily to bolster servers and AI infrastructure.
âWe are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies,â noted Sundar Pichai.
Why AI/Semiconductor Investors Should Care: Alphabetâs hefty cloud investments and next-gen AI models signal unwavering commitment to scaling GPU/TPU capabilitiesâbenefiting chip suppliers and fueling AI-driven revenue streams. The planned $75B in capital expenditures highlights potential for continued growth, but also raises questions around near-term cost pressures. For AI and semiconductor investors, Alphabetâs focus on advanced research, data center expansion, and next-wave products makes it a bellwether for future infrastructure and AI market opportunities.
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Details:
đľ Dynamic Updates: Start with giants like TSMC and ASML, then expand to 30+ companies as their Q4 2024 earnings roll in. Earnings are restarting!!
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Why AI/Semiconductor Investors Should Care: This evolving earnings handbook gives you a strategic edge. Understanding quarterly earnings data is crucial for gauging industry health, discovering new growth leaders, and aligning your investment approach with emerging technological waves.
Disclaimer: For educational and informational purposes only. Not financial advice. Consult with a qualified professional before making any investment decisions. Updates are only for the Quarter of Earnings.
Advanced Micro Devices (NASDAQ: AMD)
đĽ AMD Fires Up Q4 with AI Acceleration Timeline!
What The Chip: AMD just released its Q4 2024 earnings, reporting record quarterly revenue of $7.7 billion (up 24% year over year). Data center segment sales soared 69% as EPYC CPUs and Instinct GPUs gained traction in cloud, AI, and HPC deployments.
Details:
đĽ Record Revenue: Q4 revenue hit $7.7B, pushing full-year revenue to $25.8B. Strong data center and client sales offset weaker gaming and embedded demand.
đ Data Center Surge: Data center revenue jumped 69% YoY, surpassing $3.9B, driven by higher EPYC server processor share and over $5B in Instinct AI accelerator sales for the year.
đť Client Gains: Client segment notched a record $2.3B in Q4, propelled by strong desktop and mobile Ryzen processor demand. CEO Dr. Lisa Su noted, âWe successfully established our multibillion-dollar data center AI business and accelerated our Instinct hardware and ROCm software roadmaps.â
đ¤ Enterprise Momentum: AMD highlighted increased on-prem enterprise deployments and new commercial PC deals, including a collaboration with Dell for a full fleet of Ryzen Pro-powered commercial notebooks.
đŽ Gaming Softness: Gaming revenue fell 59% YoY as Microsoft and Sony normalized console inventory. Yet, cumulative next-gen console shipments topped 100 million units this cycle.
⥠New AI Products: AMD pulled in the launch of its MI350 series accelerators, promising a 35x AI performance leap over the prior generation, with first shipments scheduled midyear.
đ Guidance & Outlook: CFO Jean Hu guided Q1 2025 revenue to $7.1B (Âą$300M), up 30% YoY. AMD expects continuing double-digit growth in data center, supported by hyperscale AI/HPC rollouts.
Why AI/Semiconductor Investors Should Care: AMDâs leadership in x86 CPUs and its competitive plans against high-performance AI GPUs positions it to capture a growing slice of the booming AI infrastructure market. As advanced HPC and generative AI deployments require massive compute, AMDâs Instinct roadmap, robust EPYC portfolio, and deep customer relationships suggest continued upsideâwhile investors should watch for competitive pressures and overall data center spending trends.
Supermicro (NASDAQ: SMCI)
đ Supermicro: Full Steam Ahead on NVIDIA Blackwell-Powered Data Centers
What The Chip: Supermicro just announced itâs ramping up full production for its new rack-scale solutions built around NVIDIAâs anticipated Blackwell GPU platform. The company is offering both advanced liquid-cooled and air-cooled systems, aiming to address growing AI compute demands and putting to rest any delay rumors surrounding NVIDIA Blackwell.
Details:
đ§ Next-Gen Cooling Tech: Supermicro unveiled liquid-cooled 4U systems with newly developed cold plates and a 250kW coolant distribution unit, more than doubling the previous generationâs cooling capacity. They also have a redesigned 10U air-cooled chassis for traditional data centers.
đť High-Density GPU Racks: The new rack-scale design supports up to 8 systems with 64 Blackwell GPUs in a single 42U rack, and extends to a massive 12 systems with 96 GPUs in a 52U rack. For the air-cooled setup, up to 4 systems can fit into a single rack.
⥠Performance Gains: Management highlights up to 15x inference and 3x training performance improvements over prior generations. Charles Liang, president and CEO, said, âOur latest NVIDIA Blackwell-powered solutionsâŚdeliver outstanding computational power.â
đ Scalable Networking: Configurations feature NVIDIA Quantum-2 InfiniBand or NVIDIA Spectrum-X Ethernet in a ânon-blockingâ design. This setup offers a 256-GPU scalable unit in five racks and up to 768 GPUs in nine racks, providing AI teams more flexible scaling options.
đ SuperCluster Option: Supermicroâs SuperCluster solution can house up to 72 NVIDIA Blackwell GPUs and 36 NVIDIA Grace CPUs in a single rack, showcasing 130 TB/s GPU communication speeds over NVLink.
đ End-to-End Deployment: Supermicro emphasizes turn-key offerings, from proof-of-concept to fully built liquid-cooled or air-cooled data center solutions. Facilities across the U.S., Europe, and Asia ensure global delivery, professional support, and consistent quality.
Why AI/Semiconductor Investors Should Care: By delivering rack-scale Blackwell solutions so quickly, Supermicro appears poised to capture a wave of data center upgrades for advanced AI workloads. This move not only validates NVIDIA Blackwellâs timing but also signals a fresh cycle of infrastructure spending. For investors, itâs a key barometer of industry confidence in the next generation of GPU technologyâand a significant catalyst for both companiesâ growth trajectories.
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Disclaimer: This article is intended for educational and informational purposes only and should not be construed as investment advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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[Paid Subscribers] Alphabetâs Q4 2024: AI Powers Double-Digit Revenue Gains
Executive Summary
Alphabet Inc. (NASDAQ: GOOG, GOOGL), the parent company of Google, closed 2024 on a strong note. The companyâs fourth-quarter (Q4) and full-year results highlight robust top-line expansion, driven by double-digit revenue growth in Google Search, YouTube, and Google Cloud.
According to Alphabetâs Q4 2024 financial release, the quarterâs consolidated revenues reached USD 96.5 billion, marking a 12% year-over-year increase both on a reported and constant-currency basis. For the full fiscal year 2024, revenues came in at USD 350.0 billion, also reflecting a 14% increase from the previous year (15% in constant currency).
On profitability, Alphabetâs operating income advanced 31% year over year to USD 31.0 billion in Q4, with an expanded operating margin of 32%, up from 27% in the prior yearâs quarter. Meanwhile, net income jumped 28% to USD 26.5 billion, translating into a 31% surge in diluted earnings per share (EPS) to USD 2.15.
Sundar Pichai, CEO of Alphabet and Google, underscored the role of AI in driving performance, stating, âQ4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever⌠Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses.â
The period also saw continued success in Google Cloud, which generated USD 12.0 billion in revenues during Q4 2024, growing 30% year over year. Management remains optimistic about AI-enabled solutions within Google Cloud and across Alphabetâs portfolio, signaling further expansion in 2025 and beyond.
Below is an overview of key highlights:
Consolidated revenues (Q4 2024): USD 96.5 billion (+12% YoY)
Google Services revenues (Q4 2024): USD 84.1 billion (+10% YoY)
Google Cloud revenues (Q4 2024): USD 12.0 billion (+30% YoY)
Operating margin (Q4 2024): 32% (up from 27% in Q4 2023)
Full-year 2024 revenues: USD 350.0 billion (+14% YoY)
Net income (Q4 2024): USD 26.5 billion (+28% YoY)
Diluted EPS (Q4 2024): USD 2.15 (+31% YoY)
Management noted that AI-centric initiatives across Search, YouTube, and Cloud remain top priorities. The new AI Overviews in Google Search, AI-powered infrastructure in Google Cloud, and advanced generative media models are helping the company maintain product leadership, attract new customers, and drive higher user engagement.
Growth Opportunities
Alphabetâs strong Q4 2024 results underscore the companyâs potential to unlock additional revenue streams through strategic investments and partnerships. Several areas stand out: