"Wow, it's the best, Nvidia has become more and more prominent lately."
In order to empower artificial intelligence (AI), a new generation of AI chips and software by Nvidia will be released this week where Blackwell is the name of the latest generation of AI graphics processors while the firm's debut chip called GB200 is scheduled to arrive later this year.
Nvidia managed to attract new orders through the promise of more powerful chips, for example businesses and software developers are still trying hard to get the latest generation "Hopper" H100 including related chips.
Here are three reasons why the chip will drive demand in the broader market:
Chinese Chip Market Recession
The global AI market is currently in a slump after analysts attributed the decline to the impact of US sanctions on China and a weak global chip market clearing excess inventory and China's economic recovery.
Despite the restrictions and drop in imports, it is interesting to note that domestic chip production is down despite the restrictions and drop in imports but Nvidia can easily overcome that problem with its new chips.
AI Growth Expectations
The market footprint for AI technology is huge, it may reach over 1.8 trillion dollars by 2030 which is up from the projected 200 billion dollars in 2023.
The new chip developed by Nvidia managed to generate good revenue figures from its own expected growth.
Nvidia Chip Advances
With Nvidia's new software, applications on any firm's GPU or older models that may be more suitable for use but not AI development will run more smoothly.
Nvidia releasing updates to its GPU architecture every two years has unlocked performance improvements following the Hopper architecture that powered chips like the H100 successfully served as a training ground for a large number of AI mods unveiled publicly last year.
The firm claims Blackwell-based processors such as the Gb200 offer a significant performance boost for AI firms where they can train more complex and large-scale models.
