(March 16): Nvidia Corp chief executive officer Jensen Huang addressed a large audience at the company’s key annual event, unveiling a range of new products and forecasting that its flagship AI processors will drive US$1 trillion (RM3.92 trillion) in sales by 2027. During a two-and-a-half-hour keynote, Huang indicated that the surge in demand for computing power continues unabated, suggesting that Nvidia is well-positioned to meet this escalating need.
“I believe that computing demand has increased by one million times in the last two years,” Huang stated, capturing the sentiments of many in the tech community. As Nvidia contends with increasingly skeptical investors seeking evidence of sustainable sales growth, the trillion-dollar forecast—bolstered by orders for its Blackwell and Rubin chips—seeks to reassure stakeholders about ongoing demand.
Huang’s remarks came amidst a backdrop of cautious optimism, as the company had previously forecast that data centre equipment would generate US$500 billion in sales through 2026. The new projection extends this outlook another year, effectively doubling the cumulative forecast. Following the announcement, Nvidia shares initially rose by 4.8% but ultimately closed up 1.6% at US$183.19 in New York.
According to Bloomberg Intelligence analyst Kunjan Sobhani, “The update should ease fears of a pullback in 2027 as Rubin enters the cycle, though it may also reset market expectations higher and raise the bar again.” New product announcements and partnerships highlighted the event, known as GTC, which drew enthusiastic crowds in San Jose, California. Among the key developments was the introduction of a new Groq chip aimed at enhancing the efficiency of artificial intelligence (AI) systems.
Nvidia’s GTC event serves as a platform to showcase the growing benefits of AI, and the company announced partnerships with various industry leaders, including International Business Machines Corp, Hewlett Packard Enterprise Co, and Adobe Inc. Notably, Nvidia strengthened its collaboration with Uber Technologies Inc, which plans to implement a fleet of software-driven autonomous vehicles by 2028.
The surge in AI chip spending has elevated Nvidia to the status of the world’s most valuable company, although it faces increasing competition from firms like Advanced Micro Devices Inc and from its own customers who are exploring in-house chip production for AI applications. Huang revealed that the next generation of Nvidia’s flagship AI processors, dubbed Vera Rubin, is slated for release in the second half of 2026. This will be followed by a version named after physicist Richard Feynman, featuring customized high-bandwidth memory.
In a significant development, Nvidia revealed that the Groq 3 LPU, a specialized chip designed for optimizing large language model inference, will now be included in its product catalog. This new language processing unit boasts fast memory integrated directly onto the chip, enabling rapid text generation. Nvidia plans to produce the chip in collaboration with Samsung Electronics Co, using the latter’s advanced four-nanometer manufacturing technology. Groq-based systems are expected to be available in the latter part of the year.
The anticipated CPU, branded Vera, promises enhanced capabilities compared to its predecessors. As AI data centres grow more intricate, the coordination of tasks among various types of computers becomes increasingly vital. Nvidia’s Vera CPU is designed to efficiently manage multiple inputs while adeptly handling complex tasks, all while consuming less power.
Nvidia’s strategy appears to be evolving as it plans to offer standalone computers composed entirely of its CPUs—an approach that marks a departure from its traditional focus on graphics processing units (GPUs). This shift may further enhance Nvidia’s competitive edge against its traditional rivals, including Intel and AMD, as well as in-house efforts like Amazon’s Graviton lineup.
The company’s foray into CPUs signifies a broader strategy to diversify its offerings beyond GPUs. Nvidia has historically focused on adapting its graphics chips for data centre applications but is now taking steps to position its CPUs as viable alternatives. Following a recent agreement with Meta Platforms Inc, Nvidia is gearing up to sell its processors independently, potentially challenging Intel’s longstanding dominance in the CPU market.
As the AI landscape continues to evolve, Nvidia’s expanded product offerings and strategic partnerships could reshape industry dynamics, increasing competition and driving innovation. With the company’s market capitalization currently at an impressive US$4.4 trillion, the future developments in AI and computing power will be closely watched by both investors and industry leaders alike.
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