NVIDIA strong results cannot hide the ASIC challenge in their future

Excessive numbers continue to build their own paths

Each main cloud provider has adopted the extensive silicone clouds, cost, ecosystem scale and wide Devops advantages to determine ASIC from A to Z. Google Tpu V6 is running in production through its partnership with Broadcom. Meta MTIA built chips specifically for classification and recommendations. Microsoft is developing Project Maia for the sustainable AI’s work burdens.

Amazon Web Services encourages customers to use training for training and inferring inference.

Add to this the fact that bytedance manages TIKTOK recommendations on the allocated silicon despite geopolitical tensions. These are billions of inference requests that work on ASics daily, not graphics processing units.

Financial director Colette Chris admitted a competitive reality during the invitation. She pointed to China’s revenues, saying it had decreased to a low percentage of data center revenues. The current Q3 guidelines are completely excluded H20 shipments to China. While Huang’s comments about China’s extensive opportunities tried to invite profits in a positive direction, it was clear that the stock analysts did not buy all of this.

The general and perspective is that export controls create the constant uncertainty of NVIDIA in a market that can be said that it represents the second most important opportunity for its growth. Huang said that 50 % of all artificial intelligence researchers are in China and are completely committed to serving this market.

The NVIDIA platform feature is one of its greatest strengths

HUANG presented a suitable argument for NVIDIA’s integrated approach during the profit call. He said that the construction of modern artificial intelligence requires six different types of chips that work together, and this complexity creates the barriers of competitors struggling to match. NVIDIA is no longer charging graphics processing units anymore, but rather tightened the profit call. The company provides a complete infrastructure of artificial intelligence that holds together in the world, as it stated categorically, by returning to the infrastructure of Amnesty International as a basic message to the profit call, indicating it six times.

The prevalence of the statute makes it a virtual composition supported by almost every Devops cycle of the cloud. NVIDIA works via AWS, Azure and Google Cloud. Pytorch and Tensorflow also improve Cuda default. When Meta drops a new Llama model or Google updates Gemini, they target NVIDIA devices first because this is the place where millions of developers already work. The ecosystem creates its own weight.

Network works verify the validity of the Amnesty International Infrastructure Strategy. Revenue amounted to $ 7.3 billion in the second quarter, an increase of 98 % on an annual basis. Nvlink It connects graphics processing units at speeds that cannot touch traditional networks. Huang revealed the real economy during the call: NVIDIA picks up about 35 % of the Gigawatt Ai model budget.

“Of the Gigawatt AI factory, which can move to any place from 50 to, as you know, in addition to 10 %, let’s say, to $ 60 billion, we represent about 35 % plus or minus that … and of course, what you get for that is not the graphics processing unit.

This is not only the sale of chips. This has architecture and picks a large part of the entire creation of AI, supported by leading networks and platforms such as Nvlink Rack Systems and Spectrum x ethernet.

Market dynamics turn quickly as NVIDIA continues to report strong results

The growth of NVIDIA revenues from triple numbers slow to 56 % on an annual basis. Although this is still impressive, it is clear that the company’s development path is changing. Competition has begun to have an effect on its growth, while seeing this quarter of the most obvious effect.

In particular, China’s strategic role in the global artificial intelligence race directed the attention of analysts. As Joe Moore from Morgan Stanley Late the call was investigated, Huang estimated the chance of Chane AI’s 2025 infrastructure at $ 50 billion. Both optimism about the scale (“the second largest computing market in the world”, with “about 50 % of researchers in the world”) has been informed and realistic about organizational friction.

The third axial force that constitutes the NVIDIA path is the increasing complexity and the cost of the Amnesty International Infrastructure itself. With excessive numbers and NVIDIA customers for a long time in billion dollars in construction from the next generation, the requirements of networks, account and energy efficiency intensified.

Hyang’s comments highlighted how “sized speed orders” from new platforms such as Blackwell and innovations in NVLINK, Infiniband and Spectrum XGS networks to redefine the economic returns of the Customer Data Data Center. Meanwhile, the pressures of the supply chain and the need for continuous technological re -enrollment must maintain an uncomfortable pace and the ability to adapt to remain entrenched as a preferred architecture provider.

NVIDIA’s path is clear

NVIDIA sends the $ 54 billion q3 instructions indicating that their primary part of their DNA is strong as it has always been. Blackweell constantly improving the development of Robin’s engineering is evidence that its ability to innovate is strong as it has always been.

The question is whether there is a new kind of innovative challenge they face is something that can take over and win the same level of development that they have shown in the past. Venturebeat expects Broadcom to continue to pursue new partnerships of hyperactivity and enhance its own road map for specific improvements aimed at the burdens of inference work. Each ASIC competitor will take the competitive density they have to a new level, and looks forward to getting a design that creates higher switching costs as well.

Huang closed the profit invitation, recognizing the risks: “A new industrial revolution started. The artificial intelligence race is running.” This race includes serious competitors who rejected Nafidia just two years ago. Invested Broadcom, Google, Amazon and other billions in allocated silicone. They no longer try. They are widely shipping.

NVIDIA has faced its strongest competition since Koda’s dominance began. Its strength is valued at $ 46.7 billion for the company. However, the designated silicone momentum indicates that the game has changed. The next chapter will test whether the advantages of the NVIDIA platform outperform the Asic economy. Venturebeat expects technology buyers to follow the path of fund managers, betting on both NVIDIA to maintain the base of its profitable customers and ASIC competitors to secure the design victory as the intensive competition pushes the greater market fragmentation.

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