Half a trillion here, half a trillion there and pretty soon...
From Reuters, October 28:
- Nvidia to build seven AI supercomputers for US Energy Department
- Supercomputers to aid nuclear arsenal and alternative energy research
- CEO Huang's speech coincides with Trump's Asia tour, which will include meeting with China's Xi
- Nvidia shares rise 3.3%
Nvidia (NVDA.O) CEO Jensen Huang said on Tuesday that the artificial intelligence chip leader will build seven new supercomputers for the U.S. Department of Energy, and said the company has $500 billion in bookings for its AI chips.
The first company to be worth more than $4 trillion, Nvidia is at the core of the global rollout of AI. It is striking deals around the world while also navigating a U.S.-China trade war that could determine which country's technology is most used around the world.
Investors are looking for clarity on what chips the tech company will be able to sell to the vast Chinese market, but Huang kicked off a keynote address at the company's GTC event in the U.S. capital by praising policy by U.S. President Donald Trump while announcing new products and deals. These included network technology that will let Nvidia AI chips work with quantum computers.
The supercomputers Nvidia is building for the Energy Department will in part help the United States maintain and develop its nuclear weapons arsenal. The supercomputers will also be used to research alternative energy sources such as nuclear fusion. The largest of the supercomputers for the Department of Energy will be built with Oracle (ORCL.N) and contain 100,000 of Nvidia's Blackwell chips.
"Putting the weight of the nation behind pro-energy growth completely changed the game," Huang said. "If this didn't happen, we could have been in a bad situation, and I want to thank President Trump for that."
Nvidia shares were up 3.3% at $197.82 on Tuesday afternoon.
Nvidia also announced new details with Finnish telecom equipment maker Nokia (NOKIA.HE) to target the AI communications market. Nvidia will invest $1 billion for a 2.9% stake in Nokia and it also introduced a new product line called Arc, designed to work with telecommunications equipment. Huang said Nvidia will work with Nokia to improve the power efficiency of the company's base stations for 6G, the next generation of wireless data technology.
“We're going to take this new technology and we’ll be able to upgrade millions of base stations around the world,” Huang said.
Altogether the company has $500 billion in bookings for its Blackwell and Rubin chips over the next five quarters, the CEO said....
....MUCH MORE
We'll have more but at the moment, as usually happens during GTCs, I'm trying to absorb just what they are saying.
The stock is up $9.54 at $201.03 which is, accounting for the 4:1 and 10:1 splits is $8040 on the $25 stock, about which we were babbling a decade ago
In 2015 we started using a boilerplate intro to the company, here's a 2016 version saying "Focus on the AI/Machine Learning":
NVIDIA: Don't Buy the Stock For The Autonomous Car Stuff (or virtual reality) NVDA; TSLA; IBM
Before we go any further, our NVIDIA boilerplate:
We make very few calls on individual names on the blog but this one is special.
They are positioned to be the brains in autonomous vehicles, they will drive virtual reality should it ever catch on, the current businesses include gaming graphics, deep learning/artificial intelligence, and supercharging the world's fastest supercomputers including what will be the world's fastest at Oak Ridge next year.
Not just another pretty face.
Or food delivery app.
Who knew? We certainly didn't.
