What did Nvidia reveal in the closed-door meeting? Goldman Sachs ...
During a closed-door meeting, Nvidia mentioned that the release of the OpenAI o1 model has initiated a new era in AI storytelling. The increased demand for inference computing power has presented Nvidia with new growth opportunities. Goldman Sachs projects a continuous increase in Nvidia's AI processor market share in 2024 and 2025, with a positive shipment trend.
Nvidia's Recent Developments
Recently, there has been a resurgence in the AI industry, leading to Nvidia's stock experiencing a notable five-day increase. The stock price is now on the verge of reaching a new all-time high. The narrative of "AI story" emphasizes the growth in demand for reasoning power, which is creating space for Nvidia's chip demand.
Earlier this week, Nvidia, a key player in computing power, organized a three-day AI roadshow in New York. The event was attended by CEO Huang Renxun, CFO Colette Kress, and other members of the management team. The management team showcased their enthusiasm for both the short-term and long-term prospects of AI, particularly focusing on innovation and expansion in the AI computing sector.
The Future of AI and Nvidia's Vision
Nvidia's management emphasized that we are still in the early stages of the AI cycle. With the introduction of the OpenAI o1 model, a new era of AI storytelling has begun, shifting towards solving more intricate reasoning problems. This shift is expected to increase the demand for hardware configurations, with Nvidia's upcoming rack products positioned as the optimal solution.
The long-term vision for AI revolves around the idea that deep thinking will enable companies worldwide to employ a significant number of "digital AI employees" capable of handling challenging tasks.
Morgan Stanley highlighted the exponential growth in complexity and demand for reasoning computing, particularly in task-oriented reasoning demands. This growth presents Nvidia with fresh opportunities for expansion. Nvidia's comprehensive solution has positioned the company favorably in tackling complex challenges.
Nvidia's Strategic Advancements
In the short term, Nvidia's Blackwell product line is progressing as planned, with products already sold out for the next 12 months, indicating robust market demand. The company anticipates a strong performance in 2025, considering it as the initial phase of a long-term investment cycle.
Furthermore, Nvidia's management repeatedly referenced OpenAI's latest model, o1, during the meeting. This model requires extended 'thinking' time for reasoning tasks. The utilization of this model is expected to bring about significant advancements in AI capabilities.
In conclusion, Nvidia's focus on training models using advanced technologies like Blackwell and Rubin systems hints at exciting prospects for future generations. The development of reasoning computation demands more sophisticated hardware, with Nvidia's Blackwell system leading the way in breakthrough technology.
Long-Term Prospects and Market Trends
Morgan Stanley's report underscored the exponential growth in reasoning computation, signaling a substantial rise in demand for reasoning hardware. Nvidia's strategic positioning of Blackwell, especially at the rack scale level, is instrumental in addressing these challenges. The introduction of the GB200 system signifies a significant leap in GPU collaboration and system capabilities.
Looking ahead, the short-term outlook for Nvidia's Blackwell product line remains positive, with strong market demand indicating continued growth in shipments. The projection for Nvidia's AI processor market share to increase in 2024 and 2025 is a testament to the company's strategic advancements.
