NVIDIA CEO Jensen Huang recently shared his vision for the company’s future at the Goldman Sachs Communacopia + Technology conference. His comments sparked a 10% surge in the company’s shares, which continued to rise today.
Huang emphasized that even if the broader industry doesn’t adopt artificial intelligence (AI), NVIDIA’s demand for products will remain sustainable due to the physical limits of semiconductor fabrication. He also highlighted the company’s developed capabilities in semiconductor design, allowing it to switch manufacturing partners if needed, ensuring a continuous GPU supply.
The CEO stressed that despite AI’s potential impact on growth, the physical limitations of semiconductor design will still limit general-purpose computing. This leads him to believe that CPUs will no longer be able to double in speed every year, requiring companies to adapt to computation inflation by accelerating everything possible.
Huang believes that the trillion-dollar market opportunity lies in accelerated computing, which will modernize data centers and densify computers. This shift enables customers to save costs and reduces the need for sprawling data centers.
In response to a question about potential disruptions in Asia, Huang highlighted the complexity of NVIDIA’s products, comparing them to early designs. He emphasized that the ecosystem responsible for producing these complex GPUs is diverse and interconnected, allowing the company to design diversity and redundancy into every aspect and maintain intellectual property if needed.
Huang praised TSMC, his manufacturing partner, as the world’s best due to its incredible margin of excellence. While acknowledging potential limitations in switching partners, he emphasized that NVIDIA can still provide a supply, even if it can’t match the same level of performance or cost.
Source: https://wccftech.com/nvidia-ceo-says-he-can-switch-from-tsmc-if-needed-outlines-non-ai-1-trillion-market/