Nvidia CEO Says New AI Chips Are Coming Every Year
Nvidia CEO Jensen Huang announced that the company aims to introduce new versions of its AI chips each year, twice its current rate of once every two years. The head of the world’s most valuable chipmaker claimed this would unlock $100 trillion in opportunities across different industries as part of an “industrial revolution.”
When asked by an analyst during the Q1 2025 earnings call whether Nvidia anticipates a pause in demand for the strong-selling Hopper GPUs (graphical processing units) as its upcoming Blackwell GPUs roll out, Huang replied the company expects “demand to outstrip supply for some time.” The new AI GPUs will be backward-compatible, making it easy for customers to transition to the next generation.
Nvidia’s CFO Colette Kress told investors that the company expects automotive to be its “largest enterprise vertical within data center this year,” citing Tesla’s purchase of 35,000 GPUs to improve its self-driving technology. Automotive revenue was up 17% from the previous quarter. Consumer internet companies, like Meta, are also a “strong growth vertical,” Kress noted. Sources told Reuters earlier this year that Nvidia, which currently holds about 80% of the AI chip market, also plans to enter the $30 billion custom chip market.
Huang also announced new partnerships with major Taiwanese electronics suppliers, including Wistron, Foxconn, Pegatron, and Delta Electronics, that will see the manufacturers adopt Nvidia’s technology. Taiwan’s semiconductor supply chain has been crucial to Nvidia’s recent growth.
Huang claimed that “companies and countries are partnering with Nvidia to shift the trillion-dollar installed base of traditional data centers to accelerated computing and build a new type of data center, AI factories.” The CEO’s bold claims mirror his company’s trajectory: Nvidia rode a wave of interest in AI to become the first chipmaker to hit a valuation of $1 trillion in May of last year, now worth about $3 trillion. The revenue Nvidia reported for Q1 2025 is up 262% from last year.
However, some have questioned whether Nvidia’s massive growth can be sustained. Wall Street Journal columnist James Mackintosh recently argued that Nvidia’s earnings (and therefore valuation) could fall if it faces more competition, is forced to pay more to its main supplier, TSMC, or if AI comes to be seen as overhyped.
