Nvidia CEO Jensen Huang worries that tech giants don't have enough data centers to install AI chips - Photo: AFP
On June 18, Nvidia surpassed other technology companies to become the world's most valuable publicly traded company, surpassing giants like Apple and Microsoft.
As artificial intelligence (AI) technology continues to explode, Nvidia chips are considered the new gold and oil in the technology industry.
The US chipmaker has seen phenomenal growth over the past 18 months. Nvidia shares rose 3.4% on the New York Stock Exchange on June 18, bringing the company’s market capitalization to about $3.3 trillion, surpassing Microsoft and Apple. Nvidia’s value has increased 174% this year.
The chipmaker is riding the AI wave and is the largest supplier of AI GPU chips to companies like Microsoft and Amazon, but recent reports have revealed growing concerns from Nvidia CEO Jensen Huang.
Huang discussed the concerns with company executives in a series of meetings, The Information reported, adding that he was worried that the biggest customers might not buy more Nvidia chips.
"Nvidia CEO Jensen Huang convened a series of meetings with company executives to discuss a growing concern: whether Nvidia's biggest customers will run out of data center space to install artificial intelligence chips, which could hurt sales," the newspaper quoted a person who attended the meetings as saying.
Accordingly, what Nvidia's CEO is concerned about is whether cloud giants like Amazon and Microsoft can expand their data centers and infrastructure quickly enough to handle their orders.
Following the meetings, Nvidia executives stepped up their probes of partners on the issue.
Nvidia could hit $10 trillion by 2030?
Demand for powerful GPU chips that are driving new growth in AI has helped Nvidia see its profits soar. In May 2024, Nvidia reported net income of $14.9 billion, while revenue reached $26 billion, nearly four times higher than the same period last year.
"We believe that next year, the race to reach the $4 trillion market capitalization milestone in the technology sector will be a major competition between Nvidia, Apple and Microsoft," Wedbush Securities said.
But with its huge potential, analysts believe Nvidia could quickly reach the $5 trillion mark, even reaching $10 trillion by 2030.
Source: https://tuoitre.vn/cong-ty-lon-nhat-the-gioi-nvidia-so-e-chip-20240620224251613.htm
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