NVIDIA has high optimism with the AI hype, as the company's executives have predicted that the industry could explode up to the $600 billion mark, credited to the immense demand backed up by the race of GenAI amongst tech behemoths.
NVIDIA Forecasts Huge Revenue Through AI, Team Green Plans On Going All In
Speaking at the Goldman Sachs Communacopia and Tech Conference, NVIDIA's Head of Enterprise Computing Manuvir Das shared the company's forecast for the AI industry, expressing the "exponential" growth that Team Green expects in the upcoming years. Manuvir revealed that the chip segment within the AI industry could total up to $300 billion, while the generative AI and omniverse enterprise applications could amount to another $300 billion.
Manuvir expressed that even after immense hype in the industry, accelerated computing is still in its initial stages and the world has to see a lot more. Here is what he had to say:
If you think about the traditional computing systems based on CPU computing, what has changed over the decades is simply the location — you're in the cloud, you're doing it on your phone, but it's essentially the same style of computing.
And more and more, the functions of companies are being done in computing. That means you need more and more computing in the world, which means you need more data centers. You need more energy. You need more horsepower, and it's just not sustainable.
-NVIDIA's Executive Manuvir Das (via Yahoo! Finance)
The statement by NVIDIA officials in no way is impossible as industry indicators have pointed toward such rapid growth in the upcoming years. A prime example of this is the boost of revenue in NVIDIA's data center division in FY23, which has led the company toward the trillion-dollar mark in total valuation. It seems like NVIDIA has laid out a plan to implement for the future, and by the looks of it, Team Green is indeed on track.
Now you might be asking, how the industry will reach up to the $600 billion mark. It surely won't happen overnight, but we expect that the figures forecasted by the NVIDIA official could be in a 10-year timeframe, given that the industry has yet to see its "peak point".
Moreover, another important fact to highlight is that Team Green has predicted a $300 billion industry for AI chips, with a majority of the chunk going towards NVIDIA, given that the landscape doesn't change. This matches with the target of NVIDIA to generate the same amount through AI-driven sales by 2027, hence the prediction indeed isn't a ballpark figure.
NVIDIA is all set for now since apparently, the company has placed its future on AI. With massive revenue expectations, NVIDIA is going all in, and one should expect significant advancements within NVIDIA's AI portfolio, especially in the domain of AI GPUs.
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