Nvidia, the tech giant, has reported a remarkable profit of US$14 billion in a single quarter attributed to AI chips. The company’s CEO, Jensen Huang, has announced a strategic shift, revealing plans to design new chips every year instead of the previous biennial cycle.
During the call, Huang disclosed that Nvidia will now follow a more aggressive timeline for developing various chips, including new CPUs, GPUs, networking NICs, and switches. He emphasised the company’s commitment to swiftly advancing all chip categories to align with the new yearly cadence for chip releases.
Surging demand and growth prospects
Addressing the surging demand for Nvidia’s AI GPUs, Huang expressed optimism about the market dynamics. He underscored the significant cost-saving and revenue-generating potential for customers adopting Nvidia’s latest chip offerings. Huang’s remarks on the call painted a picture of strong market demand and the urgency among businesses to leverage Nvidia’s cutting-edge technologies.
In a compelling sales pitch, Huang highlighted the competitive edge that early adopters of Nvidia’s AI technologies would gain. He emphasised the importance of being at the forefront of AI innovation, contrasting it with the incremental improvements offered by competitors. Huang’s strategic vision for Nvidia positions the company as a leader in groundbreaking AI advancements.
Automotive and data centre domains
Nvidia’s CFO projected that the automotive sector would emerge as the primary enterprise vertical within the data centre domain this year. Noteworthy mentions included Tesla’s substantial purchase of 35,000 H100 GPUs for training its autonomous driving system. Additionally, major consumer internet companies like Meta (formerly Facebook) are identified as key growth drivers for Nvidia’s GPUs.
Several customers have already procured or are planning to acquire over 100,000 units of Nvidia’s H100 GPUs. Meta, in particular, aims to deploy more than 350,000 H100 GPUs by the year-end, underscoring the robust demand for Nvidia’s cutting-edge AI hardware solutions.
