Nvidia projects $673B in sales as AI demand widens

jimmoores

The way publications just regurgitate this stuff with no critical thought boggles my mind.

vb-8448

The projected ai capex for this and next years is above 1000b/year. 673b/year doesn't sound so weird, if they manage to spent so much, obviously.

drbscl

Sold after the price rise from this announcement. They can make the sales projection, but it doesn't mean they'll hit it: 1. Small models are rapidly growing in capability, require less compute to train and serve 2. There are more suppliers now, both in China & the US (OpenAI even have their own inferencing hardware now) 3. Memory still constrains how much they can ship in the short term

throwaway63467

It’s crazy that their profit margin is above 50 %, before the AI craze I only knew such margins from drug trafficking cartels (supposedly).

jedberg

Remember, Nvidia sells services too, not just GPUs. They also sell full racks of servers. This is just sales, not profits.

ask1287

Posts that question the AI Endsieg are flagged now. That is supreme confidence in the numbers.

tinyhouse

As someone who uses AI all day it all makes sense. However, if AI is going to have serious impact white collar jobs as some people predict, the demand will decline. People without jobs won't pay for expensive subscriptions or API prices and the economy will be in recession. For me the important question is where the economy will be in the next 5 years. Because if the economy is doing well, I have no doubt the AI demand will continue to sky rocket. I don't think it matters to Nvidia how uses their compute, closed or open models. The win either way.

mohitpaddhariya

cool stuff!!!!

amelius

Is this $673B coming mostly from BigAI? Or from individuals and smaller companies?

amelius

What if there are no memory chips for people to build hardware with, using nvidia components?

gigatexal

Margin is insane. They made roughly double net income, pure profit, what Apple did (even if you take out the ~8B in paper gains from their investments in other AI shops) on 13B less revenue.

heisenbit

This would require data centre cap-ex north of 1T and revenues from non AI companies in the same order of magnitude. Is it realistic to scale up data centre roll-outs? Are regular companies ready to re-allocate 1T? And this all happens in an environment where rates go up and many of the companies are not profitable?

Havoc

A long time ago I put money into Qualcomm and then just dumped the remaining cash into Nvidia. That did well but wow do I wish I had done the reverse

amelius

Can they even find the production slots at TSMC?

consumer451

I have not been paying much attention to the whole circular deal thing that NVIDIA is supposedly doing. As in, they invest in their clients, who buy their products. Can anyone who actually understands finance please explain a couple things to me? 1. Are those accusations are true in a significant way, and are actually a bad thing? 2. This claimed $673B in sales, how much of it comes from NVIDIA's own money, invested into their clients? Is there any way to know that?