Nvidia’s GTC Conference Unveils Massive Total Addressable Market and New Collaborations
Following Nvidia’s GTC developer conference, Wall Street analysts praised CEO Jensen Huang’s keynote speech, noting that the announcements widen the company’s competitive moat and increase its opportunities in the multi-trillion dollar IT and infrastructure as a service sector.
Increasing Opportunities for Infrastructure and AI as a Service Sector
Bank of America analyst Vivek Arya noted that the keynote fundamentally widened Nvidia’s competitive moat and increased the company’s opportunity in the multi-trillion dollar IT and infrastructure as a service sector. The conference featured several significant new partnerships, including Amazon Web Services, Microsoft Azure, Google Compute Platform, and Oracle. Nvidia’s size, scope, and vision could aid in bringing large language models to almost every end-market.
Fresh Collaborations and Platforms
Nvidia also unveiled four new generative AI platforms: Grace Hopper, H100 NVL (for large language models), L4 (for AI video), and L40 (for AI image generation) for recommender engines. According to Arya, Nvidia’s leadership in the emerging generative AI/large language model market has the potential to transform the current tech sector and give rise to disruptive startups.
Superiority in the AI market
Barclays analyst Blayne Curtis dubbed Nvidia the “king” of generative AI, and Raymond James analyst Srini Pajjuri praised Nvidia’s automotive and cloud services initiatives. Pajjuri believes that cloud service offerings present a roughly $1B per year incremental revenue opportunity.
However, as the company’s total addressable market grows, worries about the possibility of a monopoly have grown. According to Bernstein analyst Stacy Rasgon, CPUs are unable to keep up, giving Nvidia the upper hand. While this might be advantageous for Nvidia’s expansion, some investors and business professionals are concerned about what it might mean for innovation and competition.
Nvidia’s GTC developer conference has widened the company’s competitive moat and increased its opportunities in the multi-trillion dollar IT and infrastructure as a service sector. Wall Street analysts praise Nvidia’s leadership in the AI market, new collaborations and platforms, and expansion into cloud services. However, concerns about potential monopolies and their effects on innovation and competition should not be dismissed.
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