NVIDIA Predicts Big Profits from AI GPUs, Targets $4 Trillion Value

Even though supply problems and antitrust investigation are happening, NVIDIA wants to reach a $4 trillion market cap by giving investors a lot of money back on AI GPU investments.

NVIDIA was worth $3.34 trillion in June 2024, a short time when it was the world’s most valuable company. This important milestone had almost doubled in value since the beginning of the year. Since then, NVIDIA’s value has dropped behind Microsoft and Apple, but it looks like it will soon be back on top.

Ian Buck, Vice President and General Manager of NVIDIA’s hyperscale and HPC business, talked about the financial perks of investing in GPUs at the Bank of America Securities 2024 Global Technology Conference.

He said that cloud service companies get a big return on their investment with NVIDIA’s GPUs. Over four years, providers can make five dollars for every dollar they spend on GPUs. Even more impressive, Buck said that the return on investment for inferencing jobs is even higher, at $7 for every $1 invested in the same time period. This number is also going up.

Customers want more AI inference, so NVIDIA is making products like NVIDIA Inference Microservices (NIMs) that serve well-known AI models like Gemma, Mistral, and Llama. The company is also putting a lot of effort into its new Blackwell GPU, which is made for inference jobs and saving energy. Even though there might be shortages at first, NVIDIA is still positive.

Buck agreed that every new part of technology has problems with supply and demand, just like their Hopper GPU did. When Blackwell comes out at the end of this year and the beginning of next, it will likely have the same restrictions.

Cloud companies and NVIDIA have already started talking about the Rubin GPU, which is set to come out in 2026. Buck stressed how important it was to work together early on, pointing out that building a data centre requires a lot of planning.

Antitrust Concerns and Market Outlook

With a market cap of almost $4 trillion, NVIDIA is soon going to be a great place to invest thanks to its progress in AI and GPU technology. But there are some things that stand in the way of moving forward. Antitrust officials are keeping a close eye on NVIDIA because of how quickly it has grown. They expect to keep doing so.

According to NVIDIA’s progress and long-term planning, the future looks bright for GPU and AI technology. The company could change its place in the tech world and give investors big gains.

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Hammad Farooqi

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