As cryptocurrencies and gaming fade into the background, Nvidia is prioritizing generative AI.
Nvidia made no mention of cryptocurrencies or crypto mining chips in its most recent earnings call on Aug. 23, and made minimal mention of gaming as artificial intelligence dominated the narrative about growth drivers and new products.
Based on the frequency and context of the mentions, the transcript suggests a higher emphasis on AI than gaming, which was Nvidia’s core growth area before 2020, AI now appears to be Nvidia’s primary area of focus in terms of new products and revenue growth opportunities.
Gaming was mentioned 11 times during the call, while artificial intelligence came up more than seven times more often, at 75. Cryptocurrency, blockchain or mining were not mentioned once.
Nvidia's revenue hit an all-time high.
NVIDIA reported record revenue of $13.51 billion in the second quarter of 2023, achieving triple-digit growth, driven primarily by its data center division.
The report card showed that Nvidia's data center revenue increased 171% year-on-year to $10.32 billion due to a surge in demand for its HGX systems optimized for training and running large-scale generative AI models.
Nvidia also announced partnerships and products to increase enterprise adoption of generative AI. This includes collaborations with VMware, Snowflake, ServiceNow, and others to enable enterprises to leverage Nvidia’s AI infrastructure and securely build custom models.
The company also unveiled its new L40S GPU, designed to outperform the high-end H100 GPU for scale-out AI inference workloads. With the ramp-up of L40S production and broad OEM support, Nvidia aims to meet the exponential demand for accelerated computing infrastructure.
As Nvidia CEO Jensen Huang has emphasized, the world is shifting toward accelerated computing and AI-centric platforms. More than $1 trillion of data center infrastructure will shift in this direction, and Nvidia believes that its leading edge in accelerated computing and generative AI capabilities will drive its growth for many years.
Nvidia is rapidly innovating its product stack to capture the expanding AI market, launching new architectures and chips every six months. It aims to achieve a significant expansion of supply by 2023 to meet growing global demand.
Meanwhile, Nvidia’s past focus on cryptocurrency mining appears to be waning. Revenue from its CMP chips for mining has declined in previous quarters. With no mention of cryptocurrency mining or related products in its latest earnings report, Nvidia appears to be moving away from blockchain applications as it rides the generative AI wave. #NVIDIA #人工智能
