Nvidia CEO Jensen Huang has disclosed that interest for the company’s next AI processor, Blackwell, is increasing at an unprecedented rate. During an interview with CNBC’s “Closing Bell Overtime,” Huang called the chip’s hype as “insane,” noting that businesses are eager to get the most recent technology as soon as possible. Major competitors such as OpenAI, Microsoft, and Meta are vying for Blackwell, which is anticipated to power sophisticated AI data centers for technologies such as ChatGPT and Microsoft’s Copilot.
Blackwell is priced between $30,000 to $40,000 per unit and is intended to fulfill the growing need for cutting-edge AI tools, particularly as AI technology evolves fast. Huang stated that in today’s fast-paced technological world, businesses want to not only have the greatest technology, but also be the first to deploy it. As a result, Nvidia has been one of the largest beneficiaries of the AI boom, with its stock price expected to rise by almost 150% by 2024.
The increase in Nvidia’s stock price is not without justification. The company’s sales increased 122% over the previous year, hitting an astonishing $30.04 billion in the second quarter. Looking ahead, Nvidia anticipates even more growth, with revenues expected to reach $32.5 billion in the current quarter. Huang attributed Nvidia’s success to the company’s unwavering focus on innovation, which aims to increase the performance of its AI technologies year after year.
“Right now, technology is moving at such a rapid pace, which allows us to innovate even faster,” Huang remarked during the interview. “We’re aiming to make our chips more efficient, expanding their capabilities while cutting prices and energy consumption. “Everything is on track to achieve those objectives.”
Nvidia’s drive to continual improvement has helped position the business as a leader in the AI market, with plans to deliver AI platform improvements on a yearly basis. These improvements are projected to improve Nvidia’s product performance by two to three times with each iteration.
Chief Financial Officer Colette Kress stated in August that the business expects billions of dollars in revenue from Blackwell sales in the fourth fiscal quarter of 2024. With such high demand and continual innovation, Nvidia’s position as a dominating power in the AI chip industry is secure for the foreseeable future.
To summarize, Nvidia is riding the crest of an AI revolution, with its new Blackwell chip in strong demand among major tech businesses. This spike is likely to fuel the company’s development as it maintains its lead in the fight for AI advancement.
Source: CJ Haddad, CNBC, October 3, 2024. You can check out the full article here.
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