Nvidia CEO Jensen Huang’s Biggest Worry Shows that Success Has a Downside
Nvidia is currently the third most valuable company in the world.
Key Takeaways
- Nvidia CEO Jensen Huang said on Wednesday that his biggest worry was intense demand.
- “Demand is so great that delivery of our components, our technology, infrastructure, and software is really emotional for people,” he said.
- AI chip orders from Meta, Microsoft, Amazon, and Google comprise over 40% of Nvidia’s revenue.
Nvidia’s stock , but the AI chipmaker’s CEO emphasized that demand for the company’s products is stronger than ever — and that high level of demand has him on edge.
“We have a lot of people on our shoulders, and everybody is counting on us,” Nvidia CEO Jensen Huang at the Goldman Sachs Communacopia and Technology Conference.
Huang was responding to a question about his biggest worry from Goldman Sachs CEO David Solomon. Nvidia is the third in the world, after Apple and Microsoft.
“Demand is so great that delivery of our components, our technology, infrastructure, and software is really emotional for people,” Huang explained. “Because it directly affects their revenues, it directly affects their competitiveness.”
Meta, Microsoft, Amazon, and Google of Nvidia’s AI chips, constituting more than 40% of the company’s revenue.
8% on Wednesday after Huang’s remarks and like Foxconn and TSMC gained too, at 5% and 4% respectively.
Nvidia has of the AI chip market as of June, though competition is rising. Nvidia’s top rival, AMD, bought an AI startup for over half a million dollars in cash in July.
Huang the high price of Nvidia’s servers on Wednesday by saying that though the cost “could be a couple of million dollars per rack,” AI has the potential to replace older systems and drive cost savings.
Can AI Write Better Code Than Software Engineers?
Huang also addressed the issue of AI replacing software engineers when it comes to writing code.
“I think the days of every line of code being written by software engineers, those are completely over,” Huang said. “The idea that every one of our software engineers will essentially have companion digital engineers 24/7 — that’s the future.”
Amazon Web Services CEO Matt Garrman predicted the same future last month in a leaked conversation with employees. Garman said that AI would change the job description of software engineers and make it possible for them not to code at all.
Marco Argenti, the CIO of Goldman Sachs, that technical skills alone couldn’t handle AI. He encouraged future software engineers to take philosophy classes in addition to their standard coursework.
Key Takeaways
- Nvidia CEO Jensen Huang said on Wednesday that his biggest worry was intense demand.
- “Demand is so great that delivery of our components, our technology, infrastructure, and software is really emotional for people,” he said.
- AI chip orders from Meta, Microsoft, Amazon, and Google comprise over 40% of Nvidia’s revenue.
Nvidia’s stock , but the AI chipmaker’s CEO emphasized that demand for the company’s products is stronger than ever — and that high level of demand has him on edge.
“We have a lot of people on our shoulders, and everybody is counting on us,” Nvidia CEO Jensen Huang at the Goldman Sachs Communacopia and Technology Conference.
Huang was responding to a question about his biggest worry from Goldman Sachs CEO David Solomon. Nvidia is the third in the world, after Apple and Microsoft.
