Is the world’s hottest company losing its mojo?

On Deepseek, Huang praised the company’s R1 model, but said that its implications were misunderstood by the market. A model of reasoning of its type will actually require much greater calculation power to use compared to the older models, despite the claims that less energy had gone to its training, said, which means a greater demand for Nvidia chips and not less.

The industry needs “100 times more [AI computing power] What we thought he needed this period of last year, “he said, and in fact the expense at the data centers is going faster than the analysts expected, for now.

On rates, he said that the impact would be small and a short term, since Nvidia was moving his most important production in the United States. In fact, some analysts think that rates may end up becoming a competitive benefit.

“The current export restrictions of US semiconductors put an absolute ceiling on the AI ​​calculation [for China]At a degraded level of the hopper, “said Richard Clode, head of the portfolio of Janus Henderson.

“Over the next few years, the new Chinese artificial intelligence models will be limited by that calculation roof, while the models on a global level are probably trained in infrastructures to the highest exponentially.”

But despite everything, it is impossible to ignore how differently the Nvidia ads of this year received were compared with those of the previous two years, when the hype regarding the artificial intelligence applications was accelerating enormously. Huang simply mentioning Dell GTC of 2024 led to an event in the value of that company, while this year an announcement on the supply of chips to general engines did not seem to move the needle for the car manufacturer.

Previously, Huang has painted a picture of enormous economic and social benefits that would have been achieved through the IA, but despite the enormous investments and many ads of Openii, Amazon, Google, Microsoft and others, those do not even seem to be on the horizon.

In essence, the nvidia chips remain the new oil or gold in this world for the technological ecosystem, as there is only one chip in the world that feeds this Foundation AI, and is Nvidia.

Wedbush Dan Ives analyst

Now Huang is saying that the industry must invest more and that a wider pool of industries must overcome technology to see the benefits.

Nvidia is down more than 10 % from the January peak, deleting over $ 1 trillion of market value. So, the Hype di Ai Mal Fondato was pumped in stock, which means that Nvidia will return to a stable value based on its still formidable chips, or is it destined to see a rebound as subsidies for competition and commercial wars?

“The market is very skeptical about the title,” said Alec Young, head of the investment strategist of Mapsignals, as reported by Bloomberg. The current evaluation of Nvidia, combined with its high growth of the expected higher line, is a sign that “the market thinks that growth will not happen,” he said.

Loading

However, Blackwell Chip demand is increasing and no practicable competitor seems to be imminent. A Blackwell Ultra chip will be launched by the end of the year, offering the same 20 petoflops of artificial intelligence performance but with about 50 % more memory. So next year the company will move on to a new architecture called Rubin, with a complete stack that should provide Blackwell performance 3.3 times.

These are designed to be used in the clusters as part of the big data centers, but for smaller operations Nvidia has also introduced desktop pc with blackwell chip inside, starting from about $ 5000.

“In essence, the nvidia chips remain the new oil or gold in this world for the technological ecosystem, as there is only one chip in the world that feeds this Foundation AI, and is Nvidia,” said the Wedbush Dan Ives analyst.

“It is now the impact on undulating for technology. We estimate for each $ 1 spent in a nvidia chip that there is a $ 8 multiplier to $ 10 throughout the technological ecosystem with the hyperscalers, the software, the Data Center manufacturers, the computer security and the demand for energy that benefit from this trillion of $ 2 trilion of sets to participate in the next three years.”

Get news and reviews on technology, gadgets and games in our technological newsletter every Friday. Sign up here.