You Won't Believe What the Nvidia CEO Jensen Huang Just Said | NVDA Stock Analysis | Nvidia Stock

Summary

Nvidia's CEO, Jensen Huang, has proclaimed generative AI as the most impactful invention of our time, with the potential to revolutionize industries as electricity and the internet have done. Huang backs this bold claim by highlighting Nvidia's advancements in AI, demonstrating how two Hopper GPU-based HGX computers can replace 1,000 CPU server nodes at a fraction of the cost, thus unlocking new opportunities for AI applications. The video discusses Nvidia's comprehensive AI infrastructure offerings, its success in the automotive sector, and the potential for AI to transform healthcare and robotics, positioning the company to capitalize on the rising effectiveness of AI.

Takeaways

• 🚀 Nvidia's CEO, Jensen Huang, claims that generative AI is the most impactful invention of our time, with the potential to affect everyone and every industry.
• 💡 Nvidia's GPUs are foundational to the development of AI models, positioning the company to benefit significantly from AI's rise.
• 💰 Huang highlights a cost efficiency breakthrough: two Nvidia HGX computers with Hopper GPUs costing $500,000 can replace 1,000 CPU server nodes at $10 million, a 120-fold cost reduction for AI and scientific computing workloads.
• 🔄 This cost reduction could unlock new ideas and use cases that were previously considered too expensive to compute, creating a positive cycle of innovation and utility discovery.
• 🌐 Nvidia's success in AI is attributed to its expertise across all computing layers, from chips to software, and its ability to provide a full suite offering for building AI infrastructure.
• 🏆 Nvidia is winning in the AI field due to its comprehensive product offerings, which include not just GPUs but also other components necessary for AI data centers.
• 🚗 Automotive has become a multi-billion dollar business for Nvidia, with the potential for widespread adoption in driverless car technology, offering significant benefits to businesses worldwide.
• 🍽️ Driverless car technology could revolutionize industries like food delivery and trucking, reducing shipping costs and increasing efficiency.
• 🏥 Healthcare is a major area of potential growth for AI, with the possibility of accelerating medical discoveries and treatments for generations of ailments.
• 🤖 Robotics is another area where AI can increase productivity, offering assistance in jobs that could benefit from automation.
• 📈 Nvidia is currently benefiting from large language models, but it is also investing in other categories like automotive, healthcare, and robotics, which could drive future growth once the current growth from language models plateaus.

Q & A

What did Nvidia's CEO Jensen Huang claim about generative AI?

Jensen Huang claimed that generative AI is the most impactful invention of our time, impacting everyone and every industry, similar to the impact of electricity and the internet.

How does Nvidia's GPU technology benefit from the rise of AI?

Nvidia's GPUs serve as the foundational technology for AI models, and with the rising effectiveness of AI, Nvidia stands to benefit significantly from this trend.

What cost improvement did the Nvidia CEO highlight in the context of AI and scientific computing?

He highlighted that two Nvidia HGX computers with Hopper GPUs, costing roughly $500,000, can replace 1,000 nodes of CPU servers that cost $10 million, representing a significant cost improvement.

What is the significance of the cost reduction in AI and scientific computing mentioned by the Nvidia CEO?

The cost reduction makes it feasible to implement ideas that were previously considered too expensive, thus unlocking potential for innovation and new use cases.

What does the Nvidia CEO believe will happen when the cost of computing improves by orders of magnitude?

He believes that new methods will be invented, new utilities will be discovered, creating a positive virtuous cycle that drives further demand for Nvidia's technology.

How does Nvidia's expertise extend beyond just GPUs according to the CEO?

Nvidia has expertise at every computing layer, from chips to software, and across data center computing to networking, providing a full suite offering for building AI infrastructure.

What is the potential impact of AI on the automotive industry as discussed in the script?

AI, particularly driverless car technology, could provide trillions of dollars of benefit for businesses worldwide, including in areas such as food delivery and trucking.

What are some of the other areas where AI could have a significant impact, as mentioned in the video script?

Healthcare and robotics are highlighted as additional multi-billion dollar opportunities where AI could accelerate the pace of healthcare discovery and increase productivity in various jobs.

What is the potential benefit of AI in healthcare according to the script?

AI could accelerate the discovery of treatments and cures for ailments that have plagued humanity for generations, potentially saving countless lives.

What is the 'positive virtuous cycle' mentioned by the Nvidia CEO, and how does it relate to AI?

The positive virtuous cycle refers to the continuous improvement and innovation in AI that leads to more use cases, increased demand for Nvidia's technology, and further investment in research and development.

How does the Nvidia CEO view the current stage of AI improvements in terms of a baseball analogy?

He suggests that we are still in the early stages, possibly the first or second inning, indicating that there is a long way to go before reaching the limit of AI improvements.

Outlines

00:00

🚀 Nvidia's AI Impact and Cost-Efficiency

Nvidia's CEO, Jensen Huang, asserts that generative AI is the most impactful invention of our time, affecting every industry. He supports this claim by illustrating how Nvidia's Hopper GPU-based systems offer a significant cost and efficiency advantage over traditional CPU servers for AI and data processing tasks. Huang emphasizes the innovation's potential to unlock new ideas and use cases previously deemed too costly, thus creating a positive cycle of invention and utility discovery that benefits Nvidia's technology and the broader market.

05:01

🏁 Nvidia's Comprehensive AI Solutions and Future Growth

The script discusses Nvidia's full suite of offerings that make it a leading choice for businesses building AI infrastructure. It highlights the company's expertise across all computing layers, from chips to software and data centers. The video also explores emerging opportunities in automotive, healthcare, and robotics, where AI could revolutionize industries by enabling autonomous vehicles, accelerating medical discoveries, and enhancing productivity. Nvidia's current success with large language models is just the beginning, with significant investments in these new areas预示着 potential future growth and innovation.

Keywords

💡Generative AI

Generative AI refers to artificial intelligence systems that can create new content, such as images, music, or text. In the context of the video, Nvidia's CEO claims that generative AI is the most impactful invention of our time, highlighting its potential to revolutionize various industries and impact everyone.

💡Nvidia

Nvidia is a leading technology company known for its graphics processing units (GPUs) and its contributions to the field of artificial intelligence. The video discusses how Nvidia's GPUs serve as the foundational technology for AI models, positioning the company to benefit significantly from advancements in AI.

💡Jensen Huang

Jensen Huang is the CEO of Nvidia, who is quoted in the video making bold statements about the company's achievements in AI. His perspective on the transformative power of AI and Nvidia's role in this advancement is central to the video's narrative.

💡GPUs (Graphics Processing Units)

GPUs are specialized electronic hardware designed to accelerate the creation of images for output to a display. In the video, GPUs, particularly Nvidia's Hopper GPUs, are highlighted as being instrumental in the cost-effective advancement of AI, replacing traditional CPU servers for AI workloads.

💡AI Efficiency

AI efficiency refers to how effectively an AI system performs tasks, especially in terms of computational resources required. The video emphasizes the significant improvements in AI efficiency that Nvidia's technology enables, allowing for substantial cost reductions in AI deployment.

💡Virtuous Cycle

A virtuous cycle in the video refers to the positive feedback loop created by the improvement in computing costs, leading to new methods and utilities being invented, which in turn creates more use cases for Nvidia's technology, driving further demand and innovation.

💡Innovation

Innovation in the context of the video is the process of translating an idea or invention into a good or service that creates value. It is exemplified by Nvidia's advancements in AI technology, which have unlocked new opportunities and reduced the costs associated with implementing AI solutions.

💡AI Infrastructure

AI infrastructure encompasses the hardware, software, and network resources required to support AI applications. Nvidia is highlighted for its expertise in building AI infrastructure, providing a comprehensive suite of components that attract businesses looking to develop AI capabilities.

💡Large Language Models

Large language models are AI systems designed to process and generate human-like text based on vast amounts of data. The video mentions these models as the beginning of AI's impact, suggesting that they are just the start of a broader range of AI applications that will benefit humanity.

💡Automotive

In the video, the automotive industry is identified as a significant area for AI application, particularly in the development of driverless car technology. Nvidia's AI advancements are seen as instrumental in this sector, potentially leading to widespread adoption and substantial business benefits.

💡Healthcare

Healthcare is presented in the video as an area with immense potential for AI to make a positive impact. The use of AI to accelerate medical discoveries and find treatments for various diseases is seen as a transformative opportunity that could save countless lives.

💡Robotics

Robotics refers to the branch of technology that deals with the design, construction, operation, and use of robots. The video suggests that robotics is another area where AI advancements, facilitated by Nvidia's technology, could increase productivity and assist in various jobs, improving efficiency and outcomes.

Highlights

Nvidia's CEO Jensen Huang claims generative AI is the most impactful invention of our time, impacting everyone and every industry.

Nvidia's GPUs are foundational to the artificial intelligence models' effectiveness.

Two Nvidia HGX computers with Hopper GPUs can replace 1,000 nodes of CPU servers, reducing the cost from $10 million to $500,000 for AI and data processing workloads.

The cost reduction by a factor of 120 opens up new possibilities for implementing previously unfeasible AI ideas.

Jensen Huang emphasizes the invention of new methods and utilities as a result of significant computing cost improvements.

Nvidia's technology creates a positive virtuous cycle of innovation and demand, driving further growth and investment.

Nvidia is positioned to benefit significantly from the rise of AI due to its expertise across all computing layers.

Nvidia's full suite offering for building AI infrastructure is superior to its competitors, attracting businesses and enterprises.

Automotive has joined gaming as a multi-billion dollar business opportunity for Nvidia, particularly in driverless car technology.

Driverless car technology could revolutionize industries such as food delivery and trucking, providing significant cost savings.

Healthcare and Robotics are additional multi-billion dollar opportunities for Nvidia's AI technology.

AI has the potential to accelerate healthcare discovery, offering countless benefits and potentially saving lives.

Robotics could increase productivity in various jobs, augmenting or replacing human labor where needed.

Nvidia's current growth is driven by large language models, but there are significant investments in other categories for future growth.

The CEO's bold statement is backed by actual billions of dollars of benefits that Nvidia has helped unlock in the AI field.

Nvidia's business is in a strong position to capitalize on the rising effectiveness of AI, as demonstrated by current and future applications.

Transcripts

hey everyone nvidia's CEO Jensen hang

said some pretty bold statement about

the company's achievements in artificial

intelligence but then he actually went

on to prove or back up those statements

with actual facts on what the company

has delivered so I wanted to share with

you the statement and the claims that

the CEO is making and learn a little bit

more about one of the most popular

stocks in the market today I want to

thank the mle fool for sponsoring this

video visit fool.com parev for the 10

best stocks to buy now so the Bold

statement I'm talking about is right

here where Nvidia CEO Jensen hang says

generative AI is the most impactful

invention of our time and as with

electricity and the internet it impacts

everyone and every industry now that's a

pretty bold statement especially

considering that NV stands to benefit

significantly from the rise of

artificial intelligence from the rising

effectiveness of artificial intelligence

given that nvidia's gpus are the

foundation that these artificial

intelligence models are based on but

then Nvidia CEO goes on to highlight why

he believes this is the case and the

fundamental reasons underlying the

growth in artificial

intelligence and starting with stating

that two en viia hgx computers with

hopper gpus that together cost roughly

$500,000 can replace 1,000 nodes of CPU

servers that cost $10 million for AI

scientific Computing or data processing

workloads in other words what the CEO

was saying here is that nvidia's

Innovative Improvement is at such a

large magnitude that it makes the

previous use case up Elite why would you

pay $10 million to build your AI on CPU

servers where you can do it with Nvidia

hgx computers with hopper gpus for

$500,000 or roughly one 120th of the

cost so it's a massive Improvement a

massive Innovation that unlocks so much

potential because of that cost

Improvement where previously you had

some idea that you wanted to to

implement you looked at the cost of

implementing the idea and you didn't

consider it because you said well it's

not worthwhile it cost too much but now

with the cost reduced by

12th you can now Implement those ideas

that maybe you put on the Shelf because

they were just unworldly to compute and

that's pretty much what the CEO says

here when he says when the cost of a

fundamental resource like Computing

improves by orders of magnitude new

methods are invented and new utilities

are discovered and this creates a

positive virtuous cycle where these new

methods are are invented and new

utilities are discovered that creates

more use cases for nvidia's gpus and

nvidia's technology which creates

further demand which allows Nvidia to

sell these products to those end markets

which then brings in profits for NVIDIA

and cash flow for NVIDIA which it can

then invest in research and development

and create the next order of magnitude

Improvement which then unlocks more

opportunities which then creates more

profit and more money for NVIDIA to

invest and that positive virtuous cycle

Builds on itself for some time before it

reaches its limit and given that we're

just getting underway with the

inventions from artificial intelligence

I'm going to speak a little more about

all the different categories that could

come next for AI that this Improvement

this virtuous cycle Improvement has a

long way to go a long way to go we're

still maybe in the first or second

inning if you're considering a baseball

analogy of the Improvement of

effectiveness of AI we're just now

starting to see the benefits large

language models are just the begin

beginning there's bound to be so many

more improvements with so much more

value to humanity than large language

models one of the reasons why Nvidia has

found so much success in the AI field is

that Nvidia is an expert at every

Computing layer from chips to software

and across the data center Computing to

networking we have the expertise and

scale to help customers build AI

infrastructure anywhere so it's not just

that Nvidia has the gpus they have many

components that are required to build

that AI data center the AI

infrastructure and that's what attracts

so many businesses to Nvidia to use

nvidia's products to build these AI data

centers there are competitors out there

there are Rivals out there that have

gpus that have CPUs that have the data

center capability but Nvidia is winning

because they have the best full Suite

offering for businesses for Enterprises

looking to build out AI infrastructure

anywhere and I highlighted that large

language models are just the beginning

right Nvidia says that Automotive has

joined gaming as a multi-billion dollar

run rate

business Automotive is the next area

where I've said it could gain widespread

adoption because of how it helps develop

driverless car technology and that's

something that could provide trillions

of dollars of benefit for business

worldwide now you might be thinking

about Tesla and driverless cars from

Tesla's point of view because that's the

most popular use case or discussion

point for driverless cars but you can

also think about other areas where

driverless car technology could be

highly in demand such as for food

delivery apps such as for Amazon in

delivering its products maybe for

Trucking when you can use driverless car

technology and replace drivers and that

provides a big benefit to business

because it lowers your cost of shipping

and so those use cases are in

development because there's such a great

need there's such a cost saving and then

when you look at the other areas such as

Healthcare and Robotics those are

additional multi-billion dollar

opportunities and the area I'm most

excited about is healthc care imagine if

you can use AI to accelerate the pace of

Health Care Discovery if you can

discover treatments for these ailments

that have plagued Humanity for

Generations if you can find cures

accelerated by AI that could provide

countless benefits and lives saved for

Humanity so that's one of the areas I'm

most excited about and then Robotics are

um also a huge opportunity um that could

replace or augment or help increase the

productivity of so many folks around the

world that are working in jobs that

could use the help of Robotics so these

areas are the next areas of growth for

NVIDIA where right now they're

benefiting from large language models is

the primary use case that's what's

driving all of this Revenue but there's

also Investments multiple billions of

dollars Investments going on right now

in these other categories that when

there is a big

unlock that could drive the next leg of

growth for NVIDIA maybe two maybe four

maybe six years from now after the

growth from large language models has

kind of settled down then one of these

new segments could unlock some

unleashing potential that will drive

further growth so Nvidia CEO making this

bold statement and then going on to say

like look this is happening right now

there's actual billions of dollars of

benefit happening right now that we

helped unlock and that's why our

business is in a great position to

benefit from this Rising effectiveness

of AI thank you for watching this video

I truly appreciate it I know there's a

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