Nvidia CEO Jensen Huang Emphasizes Robotics – The Second Priority After AI
At the annual shareholders meeting on Wednesday, Nvidia CEO Jensen Huang confirmed that the robotics field has now become the company's second key focus, only after artificial intelligence (AI), with autonomous vehicles being the primary driver.
According to CNBC, Mr. Huang called AI and robotics a "trillion-dollar growth opportunity" that will shape Nvidia's development strategy in the coming period.
Nvidia's Revenue Explodes Thanks to Data Center Chips
Nvidia recorded a surge in revenue, mainly due to strong GPU demand in data centers, as AI tools like ChatGPT become increasingly popular. The company is planning to apply this technology to robots and autonomous vehicles.
A year ago, Nvidia restructured, combining automotive and robotics divisions into one unit. In the previous quarter, this unit achieved $567 million in revenue, representing 1% of total revenue but growing 72% compared to the same period last year, clearly explaining why CEO Jensen is particularly interested.
Nvidia Expands Robotics with AI Chips
Jensen confirmed that Nvidia's AI chips are needed to train and deploy robotics software, from cloud systems to physical devices like autonomous vehicles and humanoid robots.
Specifically, Nvidia's Drive platform is being used by Mercedes-Benz for autonomous driving systems. The Cosmos project is developing AI for humanoid robots, promising to usher in a new era of robotics.
"The day will come when there are billions of robots, hundreds of millions of autonomous vehicles, and hundreds of thousands of robotic factories, all running on Nvidia technology," Jensen shared.
Transforming into a Comprehensive AI Infrastructure Platform
Nvidia is not just a chip manufacturer but an AI infrastructure platform. They develop software, cloud services, and network hardware to connect AI chips into a complete ecosystem.
The data center segment achieved 73% year-on-year growth. Nvidia's total annual revenue is predicted to increase by 53%, approaching $200 billion.
Competitive Challenges in China Due to Export Restrictions
However, Nvidia faces obstacles in the Chinese market, with sales nearly frozen.
In April, the US government issued stricter regulations, banning the export of Nvidia's AI H20 chips to China. Nvidia estimates losses of up to $8 billion, plus an additional $4.5 billion in inventory write-downs.
Closing the Chinese Market – Major Impact on Nvidia
Mr. Huang noted that the $50 billion market in China is completely closed to US companies.
Moreover, new regulations will expand the list of banned AI chips, continuing to target the Chinese market.
Nvidia Stock Rises Sharply, Market Value Exceeds $3.77 Trillion
Despite challenges, Nvidia's stock rose over 4% on the shareholders meeting day, closing at $154.31 – a new record, surpassing the previous level from January.
Its market capitalization reached $3.77 trillion, becoming the world's most valuable public company, surpassing Microsoft and leading the entire tech sector, while Apple ranks third at $3 trillion.
Shareholders Maintain Leadership, Nvidia's Pivotal Transformation
At the meeting, shareholders approved the executive compensation plan and re-elected all 13 board members. However, proposals for diverse reporting and meeting process improvements were not passed.
All attention is focused on the next development vision, with robotics and AI being the key drivers propelling Nvidia into the future.
