Nvidia’s meteoric success in the artificial intelligence (AI) sector has been extraordinary, with CEO Jensen Huang recently revealing a key factor behind the company’s rise: China’s booming tech ecosystem. Speaking at the 2024 Congregation of the Hong Kong University of Science and Technology (HKUST), Huang highlighted the crucial role played by Nvidia’s design centers in Hong Kong, Beijing, and Shenzhen. These centers have been pivotal in Nvidia’s growth, helping shape China’s broader technological advancements.
Huang expressed his admiration for witnessing the rapid development of China’s tech industry, remarking, “We’ve had the benefit, the great joy, and the privilege of watching the amazing technology industry form in China.” His statement follows a record-breaking financial quarter for Nvidia. In Q3, the company reported a remarkable $35.1 billion in revenue, marking a 94% year-over-year increase, largely driven by the soaring demand for its AI chips. The data center segment alone brought in a colossal $30.8 billion, cementing Nvidia’s dominance in AI computing infrastructure.
This success comes despite a past regret. Huang admitted at an AI summit in Tokyo that he turned down an offer from SoftBank Group CEO Masayoshi Son to acquire Nvidia, a decision that now weighs heavily given Nvidia’s current $3.6 trillion valuation. However, Huang remains focused on the future and the transformative role AI will play in shaping industries.
During his speech at HKUST, Huang emphasized AI’s revolutionary potential, drawing parallels with Nobel Prize wins in physics and chemistry linked to advancements in neural networks and protein prediction. He boldly declared, “AI is certainly the most important technology of our time and potentially of all time,” reflecting widespread belief in AI’s transformative impact across industries.
Wall Street analysts echo this optimism. Wedbush analyst Dan Ives called Nvidia’s recent results “jaw-dropping,” and the company expects even stronger results in Q4, with revenue projected at $37.5 billion. This growth is fueled by key deployments like Oracle Corp.’s planned AI computing clusters, which will utilize over 131,000 Blackwell GPUs.
The stock market reflects the confidence in Nvidia’s future. The company’s stock has surged over 194.69% year-to-date, outpacing rivals such as Apple and Microsoft. Nvidia’s impressive performance, combined with strategic investments in China and groundbreaking advancements in AI technology, positions it for sustained leadership in the rapidly evolving AI industry.
