Introduction
Nvidia’s next-gen Blackwell chips are expected to be a significant revenue driver for the company, according to CEO Jensen Huang. In an interview with Yahoo Finance at the Consumer Electronics Show (CES) in Las Vegas, Huang stated that Nvidia is racing to get its Blackwell chips into every data center in the world.
Blackwell Chips: A Game-Changer
The rollout of Blackwell chips is expected to eclipse sales of Nvidia’s prior-generation Hopper chips early this year. Analysts anticipate that Nvidia’s data center business will continue its blockbuster growth due to the introduction of the Blackwell lineup.
Data Center Business: The Backbone of Nvidia’s Revenue
In its most recent quarter, nearly 90% of Nvidia’s revenues came from its data center segment. The company is currently 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.
Production and Sales Expectations
- Fourth-quarter revenue at Nvidia tallied $35.1 billion.
- Several billion dollars’ worth of Blackwell chips are expected to be shipped in the fourth quarter alone.
- More shipments are anticipated throughout the year ahead.
Robotics and Self-Driving Cars: A Lucrative Opportunity
During his CES keynote address, Huang emphasized the potential of robotics and self-driving cars as a computing industry. He noted that Nvidia’s technology for autonomous driving is already set to generate $5 billion in annual sales.
Self-Driving Vehicles: The Future of Computing
- Self-driving vehicles are expected to become one of the largest computing industries in the world.
- With the addition of 100 million new self-driving cars per year, the industry’s potential is vast.
- Nvidia’s technology for autonomous driving is already a $5 billion business and will likely grow significantly.
Nvidia’s Cosmos Platform: A Simulation Tool for Developers
Huang unveiled the company’s Cosmos platform, which allows developers to simulate their self-driving vehicle software. This is part of Nvidia’s push into the auto market and its latest innovation in Las Vegas, Nevada.
Partnerships with Toyota and Aurora Innovation
- Nvidia has partnered with Toyota and autonomous trucking company Aurora Innovation.
- These partnerships will utilize specialized chips for self-driving vehicle systems.
- The newest DRIVE Thor chip for autonomous driving is based on the architecture of its latest Blackwell AI chips.
Nvidia’s Automotive and Robotics Segment: A Growing Market
While Nvidia’s automotive and robotics segments currently make up a small portion of its overall revenue, they are expected to grow significantly. In Q3, these divisions brought in $449 million compared to the data center segment’s $30.8 billion.
New AI Superchip and Client Supercomputer
Nvidia also unveiled a new artificial intelligence superchip called GB10 used in its client supercomputer. The supercomputer is part of Nvidia’s Project DIGITS announced Monday, advertised to developers, researchers, and students. It will be available in May for $3,000.
Accessing AI: A New Era
- In the case of AI, Nvidia started in the cloud.
- The company is now entering PCs and personal computers, making its AI accessible however users prefer.
Conclusion
Nvidia’s next-gen Blackwell chips are expected to drive significant revenue growth for the company. With its focus on robotics and self-driving cars, the future of computing looks promising for Nvidia. As the industry continues to grow, Nvidia is well-positioned to capitalize on this trend with its innovative technology and partnerships.
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