Market expert's key takeaway from Nvidia CEO's remarks

STORY: :: Lisa Bernhard, Reuters

:: Melissa Otto, Head of TMT (Tech, Media, Telecom) Research, S&P Global Visible Alpha

Otto also discussed the "staggering" amount of capital expenditure that tech companies have devoted to developing generative artificial intelligence.

"If we just run the growth rates," said Otto, "CapEx has accelerated at a faster pace than revenue growth, and is expected to continue."

Otto said the "million-dollar question" is at what point does "revenue growth start to outpace CapEx growth, and for that to trickle down to real earnings acceleration?"

Speaking with Reuters' Lisa Bernhard, Otto also discussed the expected revenue growth of AI darling Nvidia, and how the company's fourth-quarter outlook is "going to tell us a lot about the future trajectory of AI."

On a macro level, she discussed why Wednesday's Consumer Price Index inflation data all but confirms a quarter-point interest rate cut by the Federal Reserve at its policy meeting next week.