Nvidia CEO Jensen Huang: AI has gone through a new inflection point

Core Insights - Nvidia reported a 75% revenue growth in its core data center business, which is crucial for the company, controlling approximately 95% of the market with gross margins of 75% [1][9]. Industry Trends - The demand for AI chips is strong and diverse, driven by a new inflection point in AI technology, which has seen significant advancements in reasoning AI systems and agentic systems [2][3][5]. - AI is transforming various industries by introducing a new way of software development, impacting every sector and leading to a broad-based industrial revolution [6][8]. Customer Dynamics - Major hyperscalers account for about half of the spending in the data center segment, but other customers are also growing rapidly, contributing significantly to Nvidia's revenue growth [5][7]. - Nvidia serves a wide range of customers, including small cloud service providers and enterprises, indicating a broad application of its technology across different domains [7][8]. Competitive Landscape - Nvidia faces competition from companies like AMD, which recently secured a multi-year deal with Meta, highlighting the competitive nature of the data center chip market [9]. - To maintain its market share, Nvidia plans to roll out new chips, such as the Vera Rubin, in the second half of the fiscal year [10].