Nvidia (ticker: NVDA) seems to be increasing its bet on artificial intelligence technology, which according to the company’s CEO, Jensen Huang, might revolutionize the industry. In a keynote speech given at the annual Nvidia GTC conference, Huang specifically pointed to the company’s expanding portfolio of AI-focused chips and software applications.
During the highly anticipated meeting, analysts listened intently to the conference call as the CEO outlined Nvidia’s strategy to target industries with $100 trillion in revenue, saying that he considers 1% of that total- $1 trillion- to be the company’s total target market.
One of the slides during the presentation broke down the $1 trillion opportunity accordingly: the company envisions $300 billion in revenue from the automotive industry, $300 billion in chips and systems, $150 billion each from AI enterprise software and “omniverse” enterprise simulation software, and $100 billion from video gaming.
Even amidst the rosy outlook, the company did not provide any updated financial guidance to the analysts in attendance. However, company CFO Colette Kress said that Nvidia repurchased $2 billion of stock in the current quarter and closed by saying that the company has $5.2 billion remaining on its current stock buyback authorization.
The company CEO, Huang, took advantage of the opportunity to unveil Nvidia’s new “Hopper” chip family, ostensibly named after computer science pioneer Grace Hopper, which takes the place of its Ampere AI Chip architecture the company had released two years ago. Nvidia unveiled the H100, a processor with 80 billion transistors, which it proclaims to be “the world’s most advanced chip.”
According to Huang, this chip will be “the engine of the world’s AI infrastructure.” According to the company CEO, Hopper comes with a ninefold improvement in performance over the Ampere architecture. Nvidia also announced that its Grace CPU “super chip” for data-centre applications is on track to be shipped in 2023.
The company also announced a new suite of updated AI software tools for speech recognition and translation, recommendation engines, improved real-time communication, language translation, and other applications.
Nvidia released a computer system for creating what it calls “digital twins” of physical worlds named Omniverse, with broad applications in robotics and industrial automation. The idea of digital twins is to provide a digital representation of actual real-world objects, to conduct further testing and development.
In the Omniverse, there’s also a new set of tools to create virtual worlds and avatars. The company is in the process of launching an omniverse cloud service that will allow designers to access the Omniverse for design and simulation applications.
Huang announced updates to the company’s automated and electric vehicle platforms, including agreements with EV manufacturers BYD (BYDDF) and Lucid (LCID) that will use the Nvidia Drive platform on next-generation vehicles. According to the company, its pipeline of automotive design wins is now totalling $11 billion.