AI bubble? Jensen Huang doesn’t know her.
Chief financial officer Colette Kress told analysts that Nvidia expects to benefit from $3 trillion to $4 trillion in AI infrastructure spending by 2030, although she warned that Nvidia needs access to China to remain competitive. Sales of Nvidia’s flagship GPUs are blocked in China due to restrictions and bans by U.S. and Chinese authorities. Kress said Nvidia’s forecasting assumed no revenue from China for the current quarter, same as the past two quarters.
“America must win the support of every developer and be the platform of choice for every commercial business—including those in China,” said Kress.
The first transition involves the shift from general purpose computing to accelerated computing. Huang said Nvidia has a 20-year ongoing investment in so-called “accelerated software” libraries, which positions the company firmly at the top when it comes to science and engineering simulations, computer graphics, and data processing.
The second shift is all about generative AI, which will drive “substantial revenue gains for hyperscalers,” said Huang. GenAI will eventually replace machine learning across search, rankings, systems that involve recommendations, advertising tech, and content moderation, he added.
“These systems mark the next frontier of computing,” said Huang. Nvidia’s “singular architecture” plays a key role in all three platform shifts—and, as he went on to not, virtually all of the players in those shifts are Nvidia customers.
Kress said Nvidia will “continue to invest strategically while preserving our disciplined approach to cash flow management.”
Huang said the investments are all in the name of technical partnerships with “some of the best and most brilliant companies in the world.” He said some of the investments are in “once-in-a-generation” companies.
“We’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast—with more new foundation model makers, more AI startups, across more industries, and in more countries,” said Huang in a statement. “AI is going everywhere, doing everything, all at once.”
