Nvidia's New Chips, With a Side of Valuation

Core Insights - Jensen Huang, CEO of NVIDIA, envisions a path to $1 trillion in AI infrastructure, having already built out approximately $150 billion [15][16] - The upcoming Vera Rubin GPU generation is expected to significantly enhance performance, featuring NVLink scaling and HBM4 memory, which could provide nearly ten times the compute power of the current Blackwell platform [4][5] - Increased competition from hyperscalers like Meta, Amazon, and Google is prompting these companies to develop their own AI chips to reduce reliance on NVIDIA [9][10] NVIDIA's Upcoming Technology - The Vera Rubin generation will replace the Grace CPU with New Grace, promising double the performance [4] - The architecture improvements include NVLink scaling, enhancing GPU communication and overall system performance [5] - Future advancements will include Vera Rubin Ultra, indicating ongoing innovation in NVIDIA's product lineup [5] Competitive Landscape - Hyperscalers are investing in custom chips to cut costs, with Amazon's Trainium chip reportedly reducing compute costs by 30% [10] - NVIDIA remains a key player in the AI chip market, but faces challenges from companies that are now competing in areas they previously dominated [11][17] - The market's skepticism about NVIDIA's growth is reflected in its stock performance, which has seen a decline despite technological advancements [16][18] Partnerships and Industry Applications - NVIDIA has formed partnerships with GM for self-driving vehicles, Disney and Google for humanoid robot development, and Yum Brands for AI order-taking in fast food [23][25][27] - These collaborations highlight NVIDIA's strategy to integrate AI across various industries, reinforcing its foundational role in AI infrastructure [22] Future Outlook - Huang's projection of $1 trillion in AI infrastructure is ambitious but echoes previous forecasts that have proven accurate [15] - The ongoing demand for data center upgrades and AI capabilities suggests a sustained growth trajectory for NVIDIA, despite potential market fluctuations [12][14]