The stock market bounced back on Thursday after it recorded its worst daily sell-off since September 2023.
Meanwhile, the US Gross Domestic Growth (GDP) for third quarter climbed 4.9% on annualized basis. This was below the 5.2% growth estimate.
Overall, S&P 500 rose 1.0% to 4,747, while NASDAQ grew 1.3% to 14,964.
Tweet of the Day
https://twitter.com/StockSavvyShay/status/1734205463275905040
Chart of the Day
Here is the one-year chart of Cloudflare (NET) as of November 29, 2023, when the stock was at $78.
Cloudflare is set to be a big beneficiary in the Artificial Intelligence world with its Workers AI platform. Workers AI is an AI-inference-as-a-service platform that allows users to run machine learning models on Cloudflare network with just few lines of their own code. Developers can program on Workers AI while utilizing AI inference – a process in machine learning in which programs learn from new information outside its training data.
For example, if you’re training the computer to identify what a person is, you first feed the machine with pictures of people. The computer then can utilize inference to identify other people.
The Workers AI platform could be a catalyst for Cloudflare as it makes it accessible for developers to conduct their own AI inference. It is online using NVIDIA’s (NVDA) inference-optimized GPUs in 75 cities worldwide as of October. Management also aims to have it available in all areas they operate by the end of 2024.
Just five weeks after Cloudfare announced Workers AI, demand for the platform has increased five-fold. AI inferencing could be 10x the size of training (source: Tim Horan, Oppenheimer). Thousands of developers have already built AI applications on Cloudflare’s network and demand is accelerating, increasing 5x just since October! The company’s customers are interested in putting hundreds of billions of inference tasks on Cloudflare’s infrastructure each month.
NET is part of our Growth Portfolio and Aggressive Growth Portfolio.
