Jensen Huang returns from China with huge statements and good news?
Jensen Huang, the man and the jacket, went on a tour in China last week. Yesterday he concluded the visit, and when he spoke with the media, he left investors with much food for thought and very few nails.
And as usual, we are here with the details you need to know
So while the market tries to understand if we are in a bubble or a revolution, Huang clarified that in his opinion, Nvidia's party is just beginning, even if the electricity authority is about to pull the plug, because there is simply no choice.
That's right, the market is no longer satisfied with today's performance, it is addicted to tomorrow's promises, and Huang is certainly trying to deliver the goods.
So what's new at Nvidia, and why is Jensen Huang sure we will see "very significant growth" at Nvidia in the coming year?
We went over the statements, here are the 4 most important points you shouldn't miss
1. The new architecture, "Rubin", is not just another chip - it is the new backbone of artificial intelligence.
Jensen Huang says demand is "very strong", and when he says that, he is essentially telling his competitors "thanks for participating, here's a consolation prize".
Why?
Because Rubin is supposed to maintain Nvidia's absolute dominance, one that suddenly makes the price to earnings ratio seem logical, at least for those willing to bet on the future.
Make a note - Rubin
2. Nvidia and Intel in the same bed?
Who would have believed we would see Nvidia and Intel joining hands?
The collaboration around the custom x86 processor is an idea that was once considered science fiction, Intel brings the good old language that all computers in the world know, and Nvidia brings the brain.
This is a strategic move that shows even the green giant understands that it needs to connect to existing infrastructures to take over every data center in the world.
The market interprets this as maturity, we call it "hold me back before I swallow everyone".
Make a note - Intel
3. The elephant in the room: the energy crisis on its way to Taiwan. Here the story turns into a political-technological drama. Huang did not mince words when talking about TSMC.
He predicts that in the next ten years the manufacturing giant from Taiwan will need to grow to monstrous proportions, but there is a small problem:
There isn't enough electricity.
Silicon wafers require energy in quantities that cause entire countries to go dark.
According to Huang, the bottleneck is no longer technology, but the wall socket.
If Taiwan, the US, and Europe do not wake up and build power plants at the pace of ChatGPT, all these sophisticated chips will simply be very expensive paperweights.
Make a note, energy
4. The Chinese connection: smiles under supervision
Finally, the visit to China was described as "very successful", but let's be honest - it is a tightrope walk.
In a market under the magnifying glass of the American regulator, every handshake in Beijing is a sensitive event, Nvidia needs China to continue showing significant growth in the coming year, and Huang tries to reassure everyone that he knows how to navigate between the drops without getting wet.
Make a note - the Chinese market
In conclusion, it seems Jensen Huang is successfully selling the world a vision where artificial intelligence is king, it's just important that someone makes sure the king doesn't get stuck without battery in the last 2%.