As the Consumer Electronics Show (CES) came to a close on Tuesday, Nvidia’s CEO Jensen Huang shared his vision for the company’s future growth. In an interview with Yahoo Finance, Huang emphasized that the rollout of its next-gen Blackwell chips will be the biggest revenue driver for the company in the near term.
Racing to Get Blackwells into Every Data Center
Huang expressed his enthusiasm for the Blackwell lineup, stating, "We’re racing to get Blackwells into every data center in the world." He expects the revenues generated by Blackwell chips to eclipse those of Nvidia’s prior-generation Hopper chips as early as this year. Analysts are optimistic about Nvidia’s data center business, predicting continued blockbuster growth with the rollout of its Blackwell lineup.
Data Center Business: The Main Driver of Revenue
Nvidia’s data center business has been a significant contributor to the company’s revenue growth in recent quarters. In its most recent quarter, nearly 90% of its revenues came from this segment. The company is ramping up production of its high-powered Blackwell chip for AI applications and expects to ship several billion dollars’ worth of the hardware in the fourth quarter alone. With far more expected throughout the year ahead, it’s clear that the data center business will continue to drive revenue growth for Nvidia.
Fourth Quarter Revenue: A Record $35.1 Billion
Nvidia reported a record-breaking $35.1 billion in revenue for its fourth quarter. This impressive number is a testament to the company’s dominance in the data center market and its growing presence in other industries, such as robotics and autonomous vehicles.
Robotics and Self-Driving Cars: A Growing Opportunity
Huang also highlighted the opportunity in robotics and self-driving cars during his CES keynote address. He expects this industry to become one of the largest computing industries in the world, with Nvidia’s technology already set to generate $5 billion in annual sales for AI chipmakers.
Nvidia’s Self-Driving Technology: A Growing Business
Huang noted that Nvidia’s self-driving technology is already generating significant revenue. He said, "If it’s already a $5 billion business for us, imagine how big it’s going to be when we have 100 million new [self-driving] cars per year." This growing demand for autonomous driving technology will likely lead to increased adoption of Nvidia’s Blackwell chips.
Unveiling the Cosmos Platform
During his CES keynote address, Huang unveiled the company’s Cosmos platform for developers to simulate their self-driving vehicle software. This latest push into the auto market demonstrates Nvidia’s commitment to innovation and its growing presence in the industry.
Partnerships with Toyota and Aurora Innovation
Nvidia has formed partnerships with Toyota and autonomous trucking company Aurora Innovation, which will use its specialized chips for self-driving vehicle systems. The newest DRIVE Thor chip for autonomous driving is based on the architecture for Nvidia’s latest Blackwell AI chips.
Aurora Stock Rises Following News of Partnership
Following the news of Nvidia’s partnership with Aurora Innovation, the stock rose more than 30%. This significant increase in value demonstrates the growing interest and investment in self-driving technology.
Nvidia Stock: A Mixed Reaction
While Nvidia’s stock opened at a record high on Tuesday, it was down more than 5% in afternoon trade. This mixed reaction from investors highlights the complexities of the tech industry and the challenges faced by companies like Nvidia.
The Automotive and Robotics Segment: A Growing Portion of Revenue
Nvidia’s Automotive and Robotics segments currently make up a relatively small portion of its overall revenue. However, with the growing demand for self-driving technology and AI applications, this segment is expected to contribute more significantly to the company’s revenue growth in the future.
New Artificial Intelligence Superchip: GB10
At CES, Nvidia also unveiled a new, pint-sized artificial intelligence superchip called GB10 used in its (also new) client supercomputer. The device, sized to fit on an average desk, is part of Nvidia’s Project DIGITS announced Monday and will be available for $3,000.
Nvidia’s AI Expansion: From Cloud to PCs
Huang shared his vision for Nvidia’s expansion into AI applications beyond the cloud. He said, "In the case of AI, we started in the cloud. We’re coming into PCs, into personal computers … we want people to be able to access Nvidia AI, however you like it." This growing presence in the PC market demonstrates Nvidia’s commitment to innovation and its desire to make AI technology more accessible to a wider audience.
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Related Topics
- Nvidia’s Blackwell Chips: Learn more about Nvidia’s next-gen Blackwell chips and their expected revenue growth.
- Data Center Business: Understand how Nvidia’s data center business is driving revenue growth and its significance in the industry.
- Robotics and Self-Driving Cars: Discover the growing opportunity in robotics and self-driving cars and how Nvidia is capitalizing on this trend.
