AI is at 'an inflection point' according to Nvidia's CEO
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As Nvidia (NASDAQ:NVDA) shares surged by 9% in after-hours trading Wednesday, Chief Executive Jensen Huang left no doubt regarding where he sees the biggest opportunities for the graphics chipmaker.
And it all starts with the letters AI.
"Nvidia is essentially the operating systems for AI systems today," Huang said. "This body of software is completely accelerated."
Huang made his comments while on a conference call to discuss Nvidia's (NVDA) fourth-quarter results and business outlook. Huang said that AI adoption is beginning to show what is possible with the nascent technology. And Huang said that Nvidia (NVDA), by virtue of its expertise in areas such as gaming and data center, is in an ideal position to capitalize on the opportunities to come as demand for AI services increase.
"The cumulation of technological breakthroughs has brought AI to an inflection point," Huang said. "Generative AI has triggered a sense of urgency to adopt AI strategies."
In order to assist companies with getting into the AI game, Nvidia (NVDA) is working with many of the biggest cloud service providers to offer AI-as-a-service that can be accessed through Nvidia's (NVDA) AI platform. Nvidia (NVDA) said it is already offering access to an Nvidia (NVDA) DGX AI supercomputer via the Nvidia (NVDA) DGX Cloud on Oracle Cloud infrastructure, and will be adding Microsoft (MSFT) Azure and Google (GOOG) Cloud platform to its roster list soon. Those enterprises will be able to use Nvidia (NVDA) AI technology for training and deploying large language models and other AI "workloads".
"The opportunity is significant and driving strong growth in the data center that will accelerate throughout the year," said Nvidia (NVDA) Chief Financial Officer Colette Kress, who joined Huang on the company's conference call.
Huang said more details would be discussed at Nvidia's (NVDA) GTC developers conference in March, and added that the market for AI presents challenges and opportunities for both enterprises and tech providers such as Nvidia (NVDA).
"AI supercomputer technology remains an insurmountable obstacle for most," Huang said. "There is no question this is a very big moment for the computer industry."
Prior to Nvidia's (NVDA) results, KeyBanc analyst John Vinh said the company was already the "clear outsized beneficiary" among chipmakers working in generative AI technology.