May 31, 2025

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Nvidia, Palantir, Illumina, Atlassian and Groq

Several factors are influencing the AI landscape, from hardware to software and infrastructure. US export restrictions are impacting Nvidia's business in China, potentially costing billions in revenue and pushing Chinese companies to develop local chips. Despite these challenges, Nvidia anticipates strong sales driven by its Blackwell chips and major customers like Microsoft. Other companies like Quanta Services and AECOM are benefiting from the AI boom through infrastructure projects. Palantir's stock is rising due to increased work with the US government, while Illumina has launched an AI tool, PromoterAI, to diagnose rare diseases. Atlassian is integrating AI into its software, though facing revenue growth challenges. Groq is offering AI chips (LPUs) as alternatives to Nvidia's GPUs, and the broader AI infrastructure is evolving with both general-purpose and custom-designed chips. Generative AI is projected to experience significant growth, benefiting companies like AppLovin and CoreWeave.

Key Takeaways

  • US export restrictions are significantly impacting Nvidia's AI chip sales to China.
  • Nvidia projects strong sales growth despite China setbacks, driven by AI demand and Blackwell chips.
  • Companies like Quanta Services and AECOM are benefiting from increased infrastructure spending related to AI.
  • Palantir's stock is surging due to expanded contracts with US government agencies.
  • Illumina's PromoterAI tool uses AI to help diagnose rare diseases by identifying mutations in DNA.
  • Atlassian is integrating AI into its software platform, but faces challenges with revenue growth.
  • Groq offers LPUs as an alternative to Nvidia's GPUs, focusing on AI inference.
  • Data centers are evolving to accommodate AI acceleration, utilizing both general-purpose and custom chips.
  • Generative AI is projected to grow substantially, benefiting companies like AppLovin and CoreWeave.
  • Smaller AI stocks may represent good investment opportunities due to their potential for growth.

Trump's AI chip restrictions impact Nvidia's China business

Nvidia's earnings are being watched closely as US export restrictions on AI chips to China could affect its business. China accounts for 13% of Nvidia's sales. The US government wants to limit China's access to advanced chips. Nvidia designed the H20 chip to comply with US limits, but the Trump administration said it would require a separate export license. Nvidia's CEO said the China market is effectively closed to US companies.

Nvidia faces China setback, focuses on cloud and AI demand

Nvidia said US export rules cost them $2.5 billion in revenue and could block $8 billion more. CEO Jensen Huang said this is pushing Chinese companies to use local chips. China used to be a $50 billion market for Nvidia. Despite this, Nvidia expects $45 billion in sales, driven by its Blackwell chips for AI. Microsoft is a major customer, using tens of thousands of Blackwell GPUs.

Two under-the-radar AI stocks to watch in 2025

This article suggests that while big AI stocks like Amazon, Nvidia, and Microsoft get a lot of attention, there are other AI stocks that may be good investments. These smaller stocks might be cheaper and have more room to grow.

Two under-the-radar AI stocks to watch in 2025

This article suggests that while big AI stocks like Amazon, Nvidia, and Microsoft get a lot of attention, there are other AI stocks that may be good investments. These smaller stocks might be cheaper and have more room to grow.

Top AI-related stocks to buy now Quanta Services and AECOM

AI is booming on Wall Street, leading to big spending by tech companies. Companies like Amazon and Microsoft are spending billions on AI. This AI boom is also boosting infrastructure projects and energy production. Quanta Services and AECOM are two stocks that could benefit from this trend. They are involved in building infrastructure for AI and other industries.

Palantir stock surges as federal government work expands

Palantir's stock is up because it's doing more work for the US government. The stock has increased 70% this year. Palantir's Foundry product is now used in at least four government agencies. The Social Security Administration and IRS are also considering using Palantir's technology.

Illumina's AI tool PromoterAI helps diagnose rare diseases

Illumina, Inc. has created a new AI tool called PromoterAI to find mutations that cause rare diseases. PromoterAI looks at areas of DNA often missed by other tests. A study showed it could help explain up to 6% of undiagnosed cases. The tool uses deep learning to analyze promoter sequences, which control gene activity. PromoterAI is available for free to researchers.

Wall Street says buy Atlassian AI stock despite 53% drop

Atlassian, a software company used by many businesses, is adding AI to its tools. Wall Street analysts think this could lead to growth for the company. Atlassian's stock is down 55% from its high, but analysts believe it can recover. The company has launched an AI platform called Rovo that works with its Jira and Confluence software. However, Atlassian's revenue growth is slowing, and its costs are rising.

Groq founder talks AI chips beyond Nvidia's GPUs

Jonathan Ross, the founder of Groq, discusses his company's AI chips called LPUs. LPUs are designed for inference, which is running AI models to answer questions. Ross previously worked at Google and created the TPU chip. Groq sells LPUs and also offers AI services. He explains that training AI models is like designing cars, while inference is like manufacturing them.

AI infrastructure GPUs vs ASICs in data centers

The use of hardware to speed up AI is changing data centers. Modern data center GPUs are designed for AI processing. The choice between using existing chips or creating custom ones involves risk. Performance is very important for AI acceleration. Both merchant and custom accelerators will be used, but performance will determine which custom projects succeed.

Generative AI sales may soar 600% by 2028 AppLovin and CoreWeave

Generative AI is expected to grow a lot in the next few years. Morgan Stanley predicts that revenue from generative AI will increase greatly by 2028. AppLovin and CoreWeave are two companies that are expected to benefit from this growth. AppLovin uses AI in its advertising software. CoreWeave provides cloud infrastructure for AI applications using Nvidia GPUs.

Sources

Nvidia AI chips China Export restrictions US government Blackwell chips Microsoft AI stocks Amazon Quanta Services AECOM Infrastructure Palantir Government agencies Illumina PromoterAI Rare diseases Deep learning Atlassian Rovo Jira Confluence Groq LPUs GPUs ASICs Data centers Generative AI AppLovin CoreWeave Revenue growth Investment AI infrastructure Inference Training AI models