Welcome to Extreme Investor Network, where we provide you with unique insights into the world of finance. Today, we are going to dive into the recent developments at Nvidia and how CEO Jensen Huang is navigating the company through a period of high demand but limited supply.
In a recent interview with Yahoo Finance, Huang addressed concerns about a potential demand lull as Nvidia transitions between its current Hopper AI platform and its upcoming Blackwell system. Despite these concerns, Huang emphasized that the demand for Nvidia’s graphics processing units (GPUs) is incredibly strong, with customers eager to deploy data centers and start generating revenue.
The transition between platforms has raised questions about customer caution with Hopper orders, but Huang noted that Hopper demand continued to grow even after the announcement of the Blackwell system. This growth underscores the overwhelming demand for Nvidia’s products, which is expected to outstrip supply well into next year.
Nvidia’s first-quarter results exceeded Wall Street forecasts, with adjusted earnings per share reaching $6.12 on revenue of $26 billion. Looking ahead, the company expects revenue to reach $28 billion in the current quarter, beating analysts’ expectations. Additionally, Nvidia announced a 10-to-1 stock split and increased its quarterly dividend, reflecting confidence in the company’s future growth.
Huang also discussed Nvidia’s position in the AI inference market, emphasizing the complexity of the software stack and models used in inference. Despite competition from major cloud providers, Nvidia remains a key player in inference, with a strong position in industries like automotive, where companies like Tesla are leading the way in self-driving technology.
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