Nvidia CEO Jensen Huang addressed these concerns by emphasizing the growing importance of inference computing, which is expected to drive demand for Nvidia's new Blackwell line of AI processors. While some industry leaders argue that more efficient AI training will increase overall demand for AI computing, analysts remain cautious about Nvidia's long-term demand outlook. They highlight potential efficiency gains in inference computing and competition from lower-cost chipmakers as factors that could negatively impact Nvidia's future financial performance.
Key takeaways:
- Nvidia reported record data center revenue of $115.2B for last year, a 142% increase from the prior year, but its growth has slowed for the fourth consecutive quarter.
- Despite exceeding analysts' expectations, Nvidia's shares fell more than 7% due to concerns about the company's comparatively sluggish growth and long-term demand for AI computing.
- The release of a low-cost AI model by Chinese firm DeepSeek has raised concerns about reduced demand for Nvidia's chips, although some tech leaders argue it will drive a net increase in AI computing demand.
- Nvidia CEO Jensen Huang emphasized the importance of inference computing and highlighted the firm's new Blackwell line of AI processors designed for this purpose, despite some analysts' concerns about efficiency gains impacting long-term demand.