Nvidia shares rose after CEO Jensen Huang expressed confidence in purchase orders for two key AI chip technologies, increasing the forecast from $500 billion last year to up to $1 trillion through 2027. This comes ahead of a conference where Huang will discuss Nvidia’s graphics processing units and address concerns about emerging “inference” AI technology that could impact its business.
Nvidia’s chips power data centers used in AI models, making them essential for the growing tech sector’s investments. However, rival companies like Google are developing their own AI-enhanced chips, posing a challenge to Nvidia. The emergence of “inference” AI, where AI bots perform tasks on behalf of humans, could also present a headwind.
Analysts expect Huang to unveil a new inference-focused chip and outline how Nvidia will utilize its massive profits to stake a claim in this emerging space. The company has already invested $17 billion in Groq, a startup specializing in cheap and quick AI inference technology. Despite the challenges, Nvidia remains optimistic about its business prospects.
Source: https://www.investing.com/news/stock-market-news/ai-inference-will-be-in-focus-when-nvidias-ceo-speaks-on-monday-heres-why-4563076