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Nvidia reported a strong financial first quarter income Wednesday.
Wall -Rate was satisfied with the constant growth of NVIDIA sales, which reached 69%for the quarter. The company’s processing centers continue to increase as companies, countries and cloud providers raise nvidia graphical processing units or Graphs, for Artificial intelligence Software.
“The team continues to support the 1-2 step that has moved to its silicon/equipment/software platform and a strong ecosystem, and the team is even more moving away from its aggressive cadence of launching new products and more segmentation of products over time,” writes JPMorgan Harlan Sur.
Here are three big trips from the company income:
China can become a Nvidia market by $ 50 billion, but US export control prevents
Nvidia expects to sell about $ 45 billion in chips in July, it discovered on Wednesday, but there are no about $ 8 billion in sales that the company would record if it was not for the export of its H20 chip without a license.
Nvidia also said she missed $ 2.5 billion in April due to export restrictions on H20.
Nvidia CEO Jensen Juan said the company calls it for the company’s profit China represented the $ 50 billion market, which was effectively closed to Nvidia.
He also said that the export management elements were erroneous and just encouraged Chinese AI developers to use homegrown chips rather than make the American world choice platform for AI software.
“The United States relied on its policy on the assumption that China could not make the chips. This assumption has always been doubtful, and now it is clearly wrong,” Juan said.
He said the export control makes the AI talent use chips from household competitors such as Huawei.
“We want every developer in the world preferred the American Technological stackssaid Juan CNBC Jim Kramer Wednesday night.
Nvidia said there was no replacement in China, but this considered the options for “interesting products” that could be sold on the market.
Strength in Blackwell Blackwell has balanced some problems about exposure in China.
“Nvidia put the insurance fears to the fullest rest, showing the acceleration of businesses except Chinese winds around the drivers that seem durable. Everything should recover from here,” said analyst Morgan Stanley Joseph Moore.
Cloud suppliers are still the most important Nvidia customers
Nvidia says it has many customers ranging from sovereign countries to universities to businesses who want to explore the II.
But on Wednesday it was confirmed that clouder suppliers are companies that like Microsoft Unhappy, Google The cloud, Oracle Cloud infrastructure and Amazon Web Services – still make up about half of the income from the data centers, which for the quarter reported about $ 39.1 billion.
These companies typically buy the fastest and latest NVIDIA chips, including Blackwell, which made up 70% of NVIDIA data centers for the quarter, said the financial director of the Call of Profit.
For example, Microsoft has already launched “tens of thousands” GPU Blackwell, the company notes, processing “100 trillion tokens” in the first quarter. Tokens is an indicator of AI exit.
And it will be the first queue to get the Blackwell Ultra, the updated version of the chip with additional memory and performance. Nvidia said deliveries of these systems will start in the current quarter.
Stacey Bernstein said that “the overall forecast and the environment seems very encouraging” when the company increases in its Blackwell Collout and computing requirements.
“Nvidia is very well composed among the dirty quarter,” he said.
Looking forward to: Blackwell and Ai conclusions
Over the past few years, many Nvidia graphic processors have been used for a resource called training where the data is processed through the AI model until new abilities are received.
Now Huang talks about the potential for NVIDIA graphic processors serving AI models for millions of customers, a process called a conclusion in the field. He said he was coming on the phone where the new demand goes.
“Overall, we believe that the NVDA technological guidance remains strong, and the growth of Blackwell suppliers, which will take advantage of exponential growth in the reflections of II and achieving savings from scale,” said Ross Seimor Deutsche Bank.
Juan says the latest AI models should create more tokens – or create more results – in order to make “reasoning”, which improves AI answers. Of course, the latest Nvidia chips is designed for this, Juan said.
“We are seeing a sharp jump on the withdrawal,” Juan said. “Openai, Microsoft and Google see the step-functional jump in token generation.”
Huang compared modern AI models with the “One Shot” approach, which Chatgpt used when he first made his debut in 2022, and said that the new models needed to “calculate” a thousand times more. “
“It is, in fact, thinking of itself, destroying the problem step by step,” Juan said. “It can be planning several ways to answer. It can be the use of tools, reading PDFs, reading a web page, watching video, and then producing the result.”
Bonus: Jersen’s concern
Juan applied a noticeably more gloomy tone during the call, focusing on the impact of export control rather than the usual evangelization about the potential that changes the AI world.
He has long appeared on a call on CUP restrictions and clearly stated what impact the restrictions on the current and future business had.
“The II race is not just chips,” he said. “We are talking about the stack the world. As this stack grows to turn 6G and Quantum, the US infrastructure is threatened.”
. Christina CNBC Cristina PartSinevelos contributed to this article.
Correction: Stacey Exchange in Bernstein analysts. The previous version incorrectly wrote his name.
