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CEO of Nvidia Jensen Huang did not need any prompting on Wednesday to address the issue The elephant in the room. “There’s been a lot of talk about the AI bubble. From our perspective, we’re quickly seeing something completely different,” he said in a phone call before quickly getting to his main point.
Huang went on to spend about five minutes trying to explain how the chip maker did this rose To become the most valuable publicly traded company in the world over the past three years, it will be able to continue Unprecedented Customer request. His premise is that AI is taking over the world, and Nvidia chips will be desperately needed to power that ongoing technological revolution. “All industries, across every stage of AI, across all of their diverse computing needs in the cloud, and also from cloud to enterprise to robotics” will need Nvidia products, Huang said.
The CEO’s pep talk ultimately drew mixed reactions from Wall Street. Nvidia shares have fallen about 10 percent in recent weeks after hitting an all-time high in late October. Shares rose nearly 5 percent in after-hours trading on Wednesday after Nvidia reported record quarterly sales and Huang made his anti-bubble comments. But the increase was not enough to fully compensate for the recent selling.
Nvidia has enjoyed three years of thriving success since then OpenAI ChatGPT debuted and caused a huge surge in demand for the company’s GPUs, which are used to train and run generative AI systems. Nvidia dominates the global GPU market, and its latest releases have become highly sought after with demand far exceeding supply. On Wednesday, Nvidia executives confirmed they have about $500 billion in unfinished orders.
The company has used its newfound wealth to buy back its own stock and invest billions of dollars in AI companies, including major users and customers of its chips such as ChatGPT developer OpenAI and a data center operator. CoreWeaveand Elon Musk xAIwhich develops the chatbot Grok.
Nvidia deals have Raised concerns Some investors say the company is sustaining sales unsustainably. AI industry executives assert that a close partnership with Nvidia is critical to access to chips and technical support, and that their revenues will eventually increase enough to fund their purchases of GPUs.
On a call on Wednesday, Huang addressed a financial analyst’s question about the rationale for investing in companies like OpenAI. “The partnership we have with them is one that enables us to work more deeply from a technology perspective, so we can support their accelerated growth,” Huang said. “I fully expect this investment to translate into extraordinary returns.”