In a recent interview with Nvidia CEO Jensen Huang, the headline "Nvidia Hardware Is Eating the World" truly captures the company's current trajectory. With a market capitalization exceeding $2 trillion and boasting a revenue growth of 265% in the past year, Nvidia's impact cannot be understated.
Here are some compelling insights from the CEO that demand our attention:
- The company is pioneering a new type of data center called "AI factories." It is anticipated that custom chips will soon become indispensable for every company as AI permeates biotechnology, manufacturing, and various other sectors.
- Jensen Huang's current focal points include fundamental robotics and state-space models (SSM) as a replacement for transformers.
- Nvidia's chips are anticipated to be in short supply until next year. The company is planning to introduce a new generation of AI chips named Blackwell, and pre-orders for these chips are already sold out.
- Nvidia's AI data center business currently comprises 70% inference and 30% new model training, signifying AI's increasing transition from developers to end users.
- The company has announced a lineup of AI GPUs optimized for laptops, promising even faster performance on end-user devices.
However, it's crucial to acknowledge potential "Nvidia killers," such as the recently viral project Groq. The team claims that Nvidia's chips will be rendered obsolete by the end of the year, as everyone will opt for Groq's LPU, which operates significantly faster.
This serves as a reminder that during a gold rush, it's most profitable to sell shovels. Even Nvidia could be vulnerable if a new approach like Groq's emerges.
The landscape of technology and AI is continuously evolving, and it's essential for investors and industry observers to carefully navigate the opportunities and potential disruptors presented by companies like Nvidia and emerging competitors.
