GET IN EARLY! I'm Investing In This HUGE AI Chip Breakthrough

Summary

The video discusses the potential of Nvidia's new Blackwell GPUs, which are set to revolutionize the computing industry with their advanced performance and efficiency. The presenter argues that Nvidia's end-to-end AI computing platform, highlighted at the GTC conference, positions the company to surpass even Apple and Microsoft in market value. The Blackwell GPUs, with their dual-die design and high-speed connectivity, promise to transform data centers and supercomputers, making significant strides in AI training and inference. The presenter's enthusiasm for Nvidia's technology leads them to invest in the company's stock, anticipating its long-term dominance in the generative AI era.

Takeaways

• 🚀 Nvidia's Blackwell GPUs represent a significant leap in computing capabilities, with the potential to outperform and outscale existing technologies.
• 💡 The Blackwell architecture introduces a dual-die design, allowing for unprecedented data transfer rates and performance improvements over its predecessor, Hopper.
• 🔧 Blackwell's design costs are higher due to its complexity, which may initially result in lower profit margins, but its performance could offset this with strong market demand.
• 🌐 Nvidia is positioning itself as an end-to-end AI computing platform, not just an AI hardware company, showcasing a wide range of software solutions at GTC.
• 🔄 The Blackwell GPUs, along with Nvidia's networking technologies, enable the creation of massive, scalable data centers capable of handling the most demanding AI workloads.
• 💼 The speaker believes Nvidia's data center hardware is at the center of a major technology transformation, comparing the potential impact of Blackwell to the iPhone's influence on mobile computing.
• 📈 The speaker is bullish on Nvidia's stock, moving it up on their list of stocks to invest in, based on the company's strong product lineup and the anticipated impact of Blackwell.
• 🌟 Blackwell's performance advancements could allow for more efficient training of AI models, reducing the cost and energy consumption associated with computing.
• 🏢 Nvidia's Blackwell GPUs and data center solutions are expected to benefit a variety of industries, including self-driving cars, smart factories, and even humanoid robots.
• 📊 The speaker's investment strategy emphasizes understanding the science and technology behind companies like Nvidia, as a key to long-term wealth generation.

Q & A

What is the main assertion about Nvidia's potential in the transcript?

The main assertion is that Nvidia has the potential to become the biggest company on Earth, surpassing Apple and Microsoft, due to its innovative products and technology, particularly in the realm of AI and data center hardware.

What are some key takeaways from the GTC conference regarding Nvidia's business?

Nvidia showcased its end-to-end AI computing platform with a focus on software, interviewed executives, attended expert panels, and got hands-on with new products and services. The company is involved in various sectors from self-driving cars to supercomputers and humanoid robots.

What are the two variants of Nvidia's Blackwell GPUs?

The two variants of Nvidia's Blackwell GPUs are the B100 and the B200. The B100 is a drop-in replacement for the H100, while the B200 is a new, state-of-the-art chip with improved performance.

How does the Blackwell GPU architecture differ from its predecessor, Hopper?

Blackwell architecture scales better than Hopper in data centers and supercomputers, offering an 80% increase in speed while using the same power. It also features a unique design that combines two dies into a single chip connected by a 10 terabyte per second link.

What are the implications of the Blackwell GPU's higher unit costs?

The higher unit costs of the Blackwell GPU mean lower margins for Nvidia. However, the significant performance improvements give the company pricing power and the ability to attract more businesses to the CUDA platform.

How does Nvidia's GB200 super chip connect the Blackwell GPUs?

The GB200 super chip pairs two B200 GPUs with one Grace server CPU, connected via an NV link, which provides a chip-to-chip connection with 900 GB per second of bandwidth.

What is the significance of Nvidia's Envy link switch chip?

The Envy link switch chip, with 50 billion transistors, enables every GPU to communicate with every other GPU at full speed simultaneously, thanks to its four MV links, each capable of 1.8 terabytes per second.

How does the GB200 NVL 72 system scale to meet market demands?

The GB200 NVL 72 system scales by combining 18 compute trays with two B200 GPUs each, connected via NV link, and nine Envy link switch trays, supporting all-to-all GPU communications at 130 terabytes per second.

What is the impact of Blackwell GPUs on training large AI models?

Blackwell GPUs can train an 1.8 trillion parameter GPT model in 90 days with only 2,000 GPUs and 4 megawatts of power, compared to 8,000 GPUs and 15 megawatts with previous technology.

What is the speaker's conclusion about investing in Nvidia stock?

The speaker concludes that due to the advancements and potential applications of Blackwell GPUs, Nvidia stock is a strong investment that will likely perform well in the long term, leading to the decision to move Nvidia up one spot on their list of stocks to invest in.

Outlines

00:00

🚀 Introduction to Nvidia's Potential and Blackwell GPUs

The speaker returns from GTC with a strong conviction that Wall Street undervalues Nvidia. They emphasize the importance of understanding a company's products over just its profits and predict Nvidia's growth to surpass Apple and Microsoft. The speaker plans to discuss Nvidia's new Blackwell GPUs, their design, costs, margins, and Nvidia's networking technologies. They also mention their personal investment strategy and share some insights from GTC, positioning Nvidia at the center of a major technology transformation.

05:00

💡 Blackwell GPUs: Performance, Design, and Market Strategy

The speaker delves into the specifics of Nvidia's Blackwell GPUs, highlighting their two variants, the B100 and the B200. They discuss the B100's compatibility with existing infrastructure and its significant performance improvement over the H100. The B200 is introduced as a cutting-edge chip with superior performance at a higher power draw. The speaker also addresses the manufacturing costs and margins associated with Blackwell GPUs and suggests that future improvements in chip fabrication processes could lead to more cost-effective solutions. They emphasize the scalability of Blackwell systems in creating comprehensive data center solutions.

10:02

🌐 Nvidia's Networking Innovations and Data Center Scaling

The speaker explains the role of Nvidia's networking technologies, including the Envy link switch and Bluefield DPUs, in scaling Blackwell GPUs to create powerful data center and supercomputer solutions. They describe the capabilities of the GB200 super chip and its integration with the Grace CPU, emphasizing the high bandwidth and computational efficiency. The speaker also details the structure of the GB200 NVL 72 system, which combines multiple GPUs and networking technologies to achieve unprecedented computational and communication speeds within a single rack.

15:05

📈 Nvidia's Stock Prospects and the Future of Computing

The speaker concludes by discussing the implications of Blackwell GPUs for Nvidia's stock and the broader impact on the future of computing. They express a belief that Blackwell will significantly advance Nvidia's position in the market, with applications extending beyond data centers to autonomous vehicles, smart factories, and humanoid robots. The speaker shares their personal decision to move Nvidia up on their list of stocks to invest in, based on the transformative potential of Blackwell and its alignment with the ongoing technology revolution.

Keywords

💡GTC

GTC stands for GPU Technology Conference, which is an event where Nvidia showcases its latest advancements in the field of AI and computing. In the context of the video, the speaker has just returned from GTC and is eager to share insights about Nvidia's new Blackwell GPUs and their potential impact on the company's future.

💡Nvidia

Nvidia is a technology company known for its graphics processing units (GPUs) and AI computing platforms. The video emphasizes Nvidia's transition from being an AI hardware company to an end-to-end AI computing platform, highlighting their role in the ongoing technology transformation.

💡Blackwell GPUs

Blackwell GPUs are the next-generation graphics processing units developed by Nvidia. These GPUs are designed to significantly enhance computing capabilities, particularly in the realm of AI and data centers. The Blackwell architecture includes two variants, the B100 and the B200, each offering different levels of performance and power efficiency.

💡AI Computing

AI Computing refers to the use of computing technology to process, analyze, and generate data for artificial intelligence applications. Nvidia's end-to-end AI computing platform encompasses both hardware, like their GPUs, and software solutions that enable businesses to build on top of these technologies.

💡Data Centers

Data centers are large facilities that house computer systems and associated components, such as servers, storage systems, and networking equipment. They are the backbone of modern computing, including cloud services and AI processing. Nvidia's Blackwell GPUs are designed to scale data centers to unprecedented sizes and capabilities.

💡Investing

Investing in the context of the video refers to the financial commitment to acquire stocks or shares in a company with the expectation of profit. The speaker is convinced that investing in Nvidia's stock will yield significant returns due to the company's innovative products and growing market influence.

💡Stocks

Stocks represent shares of ownership in a company and are traded on stock exchanges. The performance of a company's stock is often used as an indicator of its financial health and market perception. In the video, the speaker discusses Nvidia's stock and its potential to become one of the most valuable assets in the stock market.

💡Performance

Performance in the context of the video pertains to the operational efficiency and speed of Nvidia's Blackwell GPUs. It is a critical factor for investors and data centers, as it directly impacts the processing capabilities and potential applications of the technology.

💡Costs and Margins

Costs and margins are financial metrics that businesses use to assess profitability. Costs refer to the expenses associated with producing goods or services, while margins indicate the profit earned after covering these costs. In the video, the speaker discusses how the design of Blackwell GPUs affects their production costs and, consequently, Nvidia's profit margins.

💡Networking Technologies

Networking technologies are the systems and hardware that enable the transmission and exchange of data between devices. In the context of the video, Nvidia's networking technologies, such as NV link and InfiniBand, are crucial for scaling data centers and supercomputers to handle the massive amounts of data generated by AI and other high-performance computing tasks.

💡Mental Health

Mental health refers to an individual's psychological and emotional well-being. The speaker of the video briefly discusses their personal experience with mental health challenges, such as stress and burnout, and how they benefit from seeking professional help through online therapy services.

Highlights

The speaker is convinced that Wall Street does not understand Nvidia's potential, predicting it will become the biggest company on Earth.

The key to finding great stocks is understanding a company's products rather than just their profits.

Nvidia is not just an AI hardware company; they are an end-to-end AI computing platform.

Nvidia showcased a lot of software at GTC, indicating a comprehensive approach to AI solutions.

The speaker learned about every part of Nvidia's business, including interviewing executives and attending expert panels.

Nvidia's data center hardware is at the center of a major technology transformation.

Blackwell and Hopper are predicted to be the platforms of the generative AI era, similar to how the iPhone made Apple the biggest company in the world.

The Blackwell GPU is Nvidia's successor to the Hopper GPUs, offering significant advancements in computing power.

Blackwell GPUs have two variants, B100 and B200, each offering different improvements and use cases.

The B100 variant is an 80% faster drop-in replacement for the H100, which is beneficial for ramping up sales.

The B200 variant is a state-of-the-art chip offering 10-25% faster performance than the B100 at a higher power draw.

Blackwell GPUs perform four times better at training AI models and an impressive 30 times better for AI inference.

The Blackwell GPU combines two dies into a single chip with a 10 terabyte per second link, showing innovative chip design.

Nvidia's chips are made at TSMC on a custom process node called N4P, indicating a specialized manufacturing process.

Blackwell systems scale to create full data center and supercomputer-sized solutions, demonstrating Nvidia's commitment to large-scale computing.

The GB200 super chip pairs two B200 GPUs with a Grace server CPU, showcasing a compact yet powerful computing solution.

Nvidia's Envy link switch chip enables every GPU to communicate at full speed simultaneously, highlighting their advanced networking technology.

The GB200 NVL 72 system is a single rack with 1.4 exaflops of AI training performance, positioning it as a significant technological achievement.

Nvidia's goal is to reduce the cost and energy associated with computing, allowing for more efficient and sustainable advancements in AI.

The speaker is moving Nvidia up one spot on their list of stocks to get rich without getting lucky, showing a strong confidence in the company's future.

Transcripts

I just got back from GTC and I'm

convinced that Wall Street does not

understand Nvidia that's because the key

to finding great stocks is understanding

a company's products not just their

profits and I'm convinced that Nvidia

will be bigger than Apple bigger than

Microsoft and Nvidia stock will sit on

top of the indexes as the biggest

company on Earth let me show you why

your time is valuable so let's get right

into it first things first I'm not here

to hold you hostage here's everything

I'm going to talk about in this video

I'll cover nvidia's insane new Blackwell

gpus I'll talk about a few things that

investors need to know about Blackwell's

design costs and margins the networking

technologies that Nvidia built to scale

Blackwell data centers to mindboggling

sizes and of course whether I'm buying

Nvidia stock as a result and where I'd

put it on the list that I made at the

start of the year to get rich without

getting lucky but let me point out a few

quick things before I dive into nvidia's

insane new Blackwell gpus first Nvidia

is not just an AI hardware company

they're an endtoend AI Computing

platform and Nvidia showcased a lot of

software at GTC I spent my time at the

conference learning as much as I can

about every part of this business I

interviewed nvidia's Executives I

attended close to a dozen expert panels

and sessions I got my hands on new

products and service demos everything

that I think the mainstream media and

Wall Street analysts are going to ignore

until it's too late and as you can

imagine there's way too much to cram

into a single video from self-driving

cars and supercomputers to humanoid

robots and digital twins for heavy

Industries and even foundational AI

models that other businesses can build

on top of so I'm going to spend the next

few videos breaking it all down for you

why because the world is going through a

major technology transformation right

now that's my second Point big

businesses are changing everything from

the hardware they run on to the kinds of

tools and processes they build on top of

it to the services and products that

they sell on top of that and like I've

been saying for a couple of years now

nvidia's data center Hardware is at the

center of this transformation and third

that's why I think Nvidia will become

the biggest company on the planet just

like the iPhone becoming the platform of

the mobile Computing era made Apple the

biggest company in the world Blackwell

and Hopper will be the platforms of the

generative AI era and if you still think

that big companies can't get bigger

remember this Warren Buffett didn't

invest in Apple until 2016 10 years

after the iPhone came out Apple was the

biggest company in the world by market

cap for 5 years when Warren Buffett

bought it and Apple stock is still 50%

of his portfolio today I don't want to

wait 10 years to find the next iPhone or

hold the next Apple stock that's why I'm

making these videos now all right one

last point and then I'll dive right into

nvidia's Hardware I get asked all the

time how I make these videos and I won't

lie it can be a real Mental Health

Battle I like to do everything myself so

my main challenge is burnout I get this

brain fog that drains my energy and

crushes my productivity for days and I

didn't think that anyone could relate so

instead of talking to someone I would

just ignore it or try to power through

it which would just make me fall even

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supporting the Channel all right I can't

wait anymore let's talk about Blackwell

the rate at which we're advancing

Computing is insane and it's still not

fast enough so we built another

chip Hopper is fantastic

but we need bigger

gpus and so ladies and gentlemen I would

like to introduce you to a very very big

GPU this is Blackwell the successor to

nvidia's Hopper gpus and just like

Hopper Blackwell has two variants the

B100 and the b200 the B100 is a dropin

replacement for the h100 which means

that data centers and supercomputers can

swap out an h100 tray and L Al put a

B100 tray in its place that's important

for investors because it means that

Nvidia won't have a hard time ramping up

Blackwell sales since the infrastructure

to support the b100s is already deployed

anywhere that there's an h100 today the

B100 is a whopping 80% faster than the

h100 while drawing the same 700 watts of

power which means the entire Blackwell

architecture scales much better than

hopper in data centers and

supercomputers that's why they're going

to want to phase in the B1 00s over time

on the other hand the b200 is nvidia's

new state-of-the-art chip it's anywhere

from 10 to 25% faster than the b00

depending on the workload while drawing

around 1,000 Watts instead of 700

compared to Hopper these new Blackwell

chips perform a whopping four times

better at training AI models and an

insane 30 times better for AI inference

but how Nvidia made it happened is

really important for investors to

understand this is the most advanced GPU

in the world in production today

this is

Hopper this is hopper Hopper changed the

world this is

Blackwell it's okay

Hopper 28 billion transistors and so so

you could see you I can see that there's

a small line between two dieses this is

the first time two dies have abutted

like this together in such a way that

the two CH the two guys think it's one

chip there's 10 terabytes of data

between it 10 terabytes per second so

that these two these two sides of the

Blackwell Chip have no clue which side

they're on there's no memory locality

issues no cash issues it's just one

giant chip when we were told that

Blackwell's Ambitions were beyond the

limits of physics uh the engineer said

so what and so this is what what

happened so there are two important

points here first this blackwall GPU

actually combines two dieses into a

single chip and connects them with a 10

terb per second link so that they act as

one GPU this is a really clever chip

design but two dieses an ultra

high-speed link and a bigger total area

for advanced packaging means that

Blackwell costs over twice as much to

make as Hopper and higher unit costs

means lower margins personally I think

the trade-off is worth it in the short

term because Blackwell's insane

performance gives Nvidia a lot of

pricing power compared to other GPU

makers and that flexibility is what lets

them get even more businesses onto the

Cuda platform at a time where every Data

Center and cloud service provider is

scrambling to get as many accelerators

as they can during a gold rush getting

everyone on your pick and shovels is

what matters most second if you've been

watching this channel for a while you

know that nvidia's chips are made at

tsmc on a process node called n4p which

was custom made for NVIDIA so as tsmc's

chip fabrication process keeps improving

shareholders should want Nvidia to offer

a single die version of these chips or

find another packaging Solution that's

higher margin than the current

architecture not necessarily higher

performance just lower manufacturing

costs while still meeting Market demands

and speaking of Market demands let's see

how Blackwell systems scale to create

full data center and even super computer

sized Solutions because that's where the

magic really happens this is a fully

functional board and I just be careful

here this right here is I don't know $10

billion two Blackwell chips and four

Blackwell dyes connected to a Grace CPU

the grce CPU has a super fast chipto

chip link what's amazing is this

computer is the first of its kind where

this much computation fits into this

small of a place so the gb200 super chip

pairs two b200 gpus with one Grace

server CPU they're connected via NV link

which is a chipto chip connection with

900 GB per second of bandwidth that's

fast enough to move 150 featurelength 4K

movies between chips every single second

this gb200 super chip is what Jensen is

holding in his left hand while he

casually holds the10 billion initial

prototype board in his right this right

here is I don't know

10

billion yeah I'm never going to be that

cool two of those gb200 Grace Blackwell

Super Chips go into a Blackwell compute

node which is one tray in an AI data

center rack the 2GB 200 Super Chips in

each tray are also connected via nvlink

at a high level nvlink is for chipto

chip connections while infin band fiber

optics connect different compute nodes

and Trays at the server level Nvidia

also makes these blue field dpus or data

processing units here's an easy way to

think about dpus CPUs have a low amount

of cores that run one operation at a

time gpus have more cores and can run

more operations in parallel dpus have

tons of cores and can handle highly

parallel workloads like coordinating

securing analyzing and transferring data

between many different chips in a data

center so dpus end up handling most of

the networking work workloads so that

CPUs and gpus don't have to all right so

18 of these compute trays go into one

gb200 nvl 72 system remember the gb200

super chip has two Blackwell gpus on it

connected via NV link there are two

Super Chips per compute tray which are

also connected via NV link and there are

18 trays per system 2 * 2 * 18 is 72

Blackwell gpus connected by NV link

that's why it's called the gb200 nvl 72

all right so we already have a good

handle on the gb200 but what about this

NV link well it turns out that NV link

is way more than just a chipto chip

connection the rate at which we're

advancing Computing is insane and it's

still not fast enough so we built

another

chip this chip is just an incredible

chip we call it the Envy link switch

it's 50 bill transistors it's almost the

size of Hopper all by itself this switch

chip has four MV links in

it each 1.8 terabytes per second what is

this chip

for if we were to build such a chip we

can have every single GPU talk to every

other GPU at full speed at the same time

that's

insane by the way and vlink infiniband

and these Bluefield dpus all came out of

nvidia's $7 billion acquisition of

melanox back in 2019 which will probably

go down as one of the best Acquisitions

in Silicon Valley history all right so

sandwiched between the compute notes

that we just talked about are nine EnV

link switch trays Each of which have two

of these EnV link chips in them and like

we saw in the compute trays each Envy

link chip connects four Blackwell gpus

four ports per nvlink chip times two

chips per tray times nine trays is the

72 ports supporting all to all GPU

Communications at a mindboggling

bandwidth of 130 terabytes per second

that's the back that's the that's the

back the dgx MV link spine 130 terabytes

per

second goes through the back of that

chassis that is more than the aggregate

bandwidth of the internet we could

basically send everything to everybody

within a second more bandwidth than the

entire internet don't worry I'll give

you a second to let your brain stop

melting all right the 18 compute trays

and the nine Envy link switch trays come

together to form this gb200 nvl 72

system which is just one Rack in an AI

data center this one rack has 1.4 xoff

flops of AI training performance in it

just to be clear there are only a few

exaflop supercomputers on Earth today

and Nvidia just built one in a single

120 KW rack that they sell off the shelf

and at the top of each of these single

rack supercomputers exists a single

infin band switch tray to connect them

to even more single rack supercomputers

and the resulting system can be

connected together to make one 32,000

GPU 645 exaflop AI Factory for the new

Industrial Revolution one Computing

platform for generative AI one giant GPU

and while your brain finishes melting

again let me ask you a simple question

why would Nvidia build something like

this and does Humanity really need gpus

this powerful 600,000 Parts somebody

used to say you know you guys make gpus

and we do but this is what a GPU looks

like to me when somebody says GPU I see

this now let's see what it looks like in

operation if you were to train a GPT

model 1.8 trillion parameter model it

took about 3 to 5 months or so uh with

25,000 amp uh if we were to do it with

hopper it would probably take something

like 8,000 gpus and it would consume 15

megawatts 8,000 gpus and 15 megawatts it

would take 90 days about three months if

you were to use Blackwell to do this it

would only take 2,000

gpus 2000 gpus same 90 days but this is

the amazing part only 4 megawatt of

power power so from 15 yeah that's

right and that's and that's our goal our

goal is to continuously drive down the

cost and the energy they're directly

proportional to each other cost and

energy associated with the Computing so

that we can continue to expand and scale

up the computation that we have to do to

train the Next Generation models so you

can do the same amount of work with one

quarter of the gpus in one quarter of

the data center footprint using one quar

of the power for Big Data Centers cloud

service providers and future

supercomputers Blackwell lets them do a

lot more in the same amount of space and

power and on the other side startups and

smaller companies can now buy a lot more

compute for the same amount of money and

power budget that's why Blackwell is

such a big deal all right I know this

video is a little long but I want it to

be thorough since Blackwell is such an

important piece of technology to wrap

your head around including its double

die design and what that means for unit

costs and margins as well as how

nvidia's networking Solutions can scale

Blackwell data centers to do anything

Humanity can throw at it now with all of

that context let's talk about whether I

would buy Nvidia stock at today's prices

and if you feel I've earned it consider

hitting the like button and subscribing

to the channel that really helps me out

and it lets me know to put out more deep

Dives like this thanks and with that out

of the way let's talk about Nvidia stock

I think that Blackwell is about to move

the needle in a big way for NVIDIA black

Blackwell is not just a new data center

GPU it's an entire compute platform

chips based on the Blackwell

architecture will also go into

self-driving Cars Smart factories and

even humanoid robots all of which I'll

cover over the next few videos because I

really believe that Nvidia stock will

sit at the top of the indexes and

Pension funds and everyone's portfolios

for years to come so with everything

I've learned from Nvidia GTC I'm moving

Nvidia up one spot on my list of stocks

to get rich with without getting lucky

that's a pretty big move considering how

high it was already and the fact that I

just can't afford to buy as much at $900

per share I also ended up moving Amazon

stock up one spot since AWS is the

biggest cloud service provider on the

planet and I think that their Bedrock

platform for generative AI is about to

benefit a lot from nvidia's Blackwell

gpus this is why it's so important to

understand the science behind the stocks

and if you want to see why I pick these

stocks here's the video where I walk

through it step by step either way

thanks for watching and until next time

this is ticker symol U my name is Alex

reminding you that the best investment

you can make is in

you