In just a few years, Nvidia has quickly grown into one of the most successful companies in the United States. The hardware manufacturer's stock has increased 1,265% in five years, coinciding with the rise of generative artificial intelligence. Nvidia is growing by providing the technology needed by AI companies and data centers.
Of course, here we associate Nvidia with manufacturing graphics cards and other hardware needed to make God's rays shine and water reflect. The company's gaming portfolio is still growing, but there's a sense that supplying AI companies is a priority for Nvidia right now. Because this is where incalculable benefits are now found.
As expected, the biggest discussion on Nvidia's latest earnings call was about AI companies and data centers, but there was also a little bit about those invested in the company's gaming portfolio (thanks, PC Gamer).
The game will still be constrained by supply issues.
“Gaming revenue of $3.7 billion increased 47% year-over-year, driven by strong demand and improving supply at Blackwell. GeForce RTX is the leading platform for PC gamers, creators and developers,” explained Nvidia CFO Colette Kress. “Going forward, end demand for our products remains strong and channel inventory levels are good, but we expect supply constraints to be a headwind for the game beyond the first quarter.”
That said, Nvidia doesn't see supply constraints going away anytime soon, as most of the company's resources are focused on supplying the ongoing artificial intelligence investment boom.
GPU prices have remained stable over the past few years, but memory shortages are being felt. The prices of RAM, HDDs, and SSDs are all rising rapidly as manufacturers struggle to meet the demands of data centers.
As if building a PC wasn't already difficult enough, Nvidia and AMD are reportedly raising GPU prices “significantly” this year.
I hope the AI video was worth it.
The CEO of electronics company Phison recently revealed that Nvidia and other so-called “memory beggars” should have committed to multi-year purchase orders for flash memory. In other words, Nvidia is taking a gamble that demand will remain consistent over the next few years because it is contractually obligated to purchase large quantities of flash memory going forward.
This is an incredibly precarious situation and is entirely dependent on the demand of the US investment market, and there is speculation that artificial intelligence will gradually become more advanced and more useful in the coming years.
Unfortunately for consumers, things aren't getting any easier on their wallets.
- Establishment date
-
April 1, 1993
- CEO
-
Jensen Huang
- subsidiary company
-
Mellanox Technologies, Cumulus Networks, NVIDIA Advanced Rendering Center
- headquarters
-
Santa Clara, California, USA
