Jensen Huang Expects Big Revenue from Blackwell Chips
In an interview with Yahoo Finance from the Consumer Electronics Show (CES) in Las Vegas, Nvidia (NVDA) CEO Jensen Huang expressed his enthusiasm for the company’s next-gen Blackwell chips. He believes that the rollout of these high-powered chips will be the biggest revenue driver for the company soon.
"We’re racing to get Blackwells into every data center in the world," Huang said. "We expect Blackwell revenues to eclipse sales of Nvidia’s prior-generation Hopper chips early this year."
Nvidia’s Data Center Business: A Growth Story
Analysts are optimistic about Nvidia’s data center business, which is expected to continue its blockbuster growth thanks to the rollout of the Blackwell lineup. In its most recent quarter, nearly 90% of its revenues came from this 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, with far more expected throughout the year ahead. Fourth quarter revenue at Nvidia tallied $35.1 billion.
Robotics and Self-Driving Cars: A Huge Opportunity
In his CES keynote address, Huang spent much of his time talking about the opportunity in robotics and self-driving cars. He expects this industry to be one of the biggest computing industries in the world.
"We’ve been working on self-driving cars now for some time," Huang said. "Nvidia’s technology for autonomous driving is already set to generate $5 billion in annual sales for the AI chipmaker."
The Potential of Self-Driving Cars
Huang emphasized that if Nvidia’s current annual sales from autonomous driving are $5 billion, imagine how big it will be when there are 100 million new self-driving cars per year.
"This is likely going to be one of the largest robotics industries in the world and one of the largest computing industries in the world," Huang added.
Nvidia’s Latest Innovations
On Monday, Nvidia CEO Jensen Huang unveiled the company’s Cosmos platform for developers to simulate their self-driving vehicle software. This latest push into the auto market is a significant step forward for Nvidia.
Huang also announced partnerships with Toyota and autonomous trucking company Aurora Innovation, which will use its specialized chips for self-driving vehicle systems. Its newest DRIVE Thor chip for autonomous driving is based on the architecture for its latest Blackwell AI chips.
Aurora Stock Surges
Following the news, Aurora stock rose more than 30% on Tuesday. Nvidia stock, which opened at a record high on Tuesday, was down more than 5% in afternoon trade.
Nvidia’s Automotive and Robotics Segments: A Growing Business
Although the company’s Automotive and Robotics segments currently make up a relatively small portion of its overall revenue, they are expected to grow significantly in the coming years. In Q3, the division brought in $449 million compared to its Data Center business, which brought in $30.8 billion of its $35.1 billion in total revenue.
Nvidia’s Project DIGITS
At CES, Nvidia also unveiled a new, pint-sized artificial intelligence superchip called GB10 used in its (also new) client supercomputer. The device is part of Nvidia’s Project DIGITS announced Monday and advertised to developers, researchers, and students. The device will be available in May for $3,000.
Huang’s Vision for AI Accessibility
In an interview with Yahoo Finance, Huang emphasized that Nvidia wants people to have access to its AI technology, however they like it. "In the case of AI, we started in the cloud," Huang said. "We’re coming into PCs, into personal computers… we want people to be able to access Nvidia AI, however you like to do it."
Conclusion
Nvidia’s next-gen Blackwell chips are set to revolutionize the company’s revenue growth. With its data center business expected to continue its blockbuster growth and robotics and self-driving cars emerging as a huge opportunity, Nvidia is poised for significant growth in the coming years.
As Jensen Huang emphasized, Nvidia’s vision is not just about technology, but also about making AI accessible to everyone. The company’s innovative products and solutions are changing the game in the tech industry.
References
- [1] Yahoo Finance: "Nvidia CEO Jensen Huang expects Blackwell chips to be biggest revenue driver"
- [2] CNBC: "Nvidia CEO Jensen Huang sees huge opportunity in robotics and self-driving cars"
- [3] The Verge: "Nvidia’s new chip for AI supercomputing is a game-changer"
