Huang Renxun said, "The Blackwell architecture platform is likely to become the most successful product in nvidia's history, as well as in the history of the entire computer industry." He pointed out that, when considering performance and operating costs, nvidia's products will be the most economically valuable.
On Wednesday (June 26), during regular trading hours in the United States, the American chip company $NVIDIA (NVDA.US)$held a shareholders' meeting.
During the meeting, shareholders approved all 12 nominees for directors, passed the executive compensation plan, and agreed to appoint PwC as the auditor of the company.
According to the documents, Nvidia's CEO Huang Renxun will receive a compensation package worth about 34 million USD in the fiscal year 2024, which is 60% higher than that in 2023.
Shareholders also changed some issues that previously required a two-thirds majority vote to a simple majority vote, including removal of directors without cause and amendment of the company charter.
Huang Renxun answered several questions during the approximately 30-minute meeting. He mentioned that the company's advantage in AI chips comes from a bet made more than a decade ago when the company invested billions of US dollars and thousands of engineers' resources into the technology.
Although Nvidia's stock price was weak during the shareholder meeting, the stock has risen nearly 150% since the beginning of the year, and the company's total market value has recently exceeded the 3 trillion USD milestone, surpassing even Microsoft and Apple to become the world's most valuable company, albeit briefly.
Huang Renxun's first question was about the company's competitive prospects. Since the AI boom, many traditional chip manufacturers and startups have launched new products, aiming to challenge Nvidia's more than 80% market share in the AI chip industry.
In response, Huang Renxun stated the company's overall strategy to maintain its leading position, saying Nvidia has transformed from a primarily gaming business to a primarily datacenter business.
Huang Renxun expressed strong bullish sentiment on the Blackwell platform, which was released in March, saying that it may become Nvidia's most successful product ever in the history of computers.
Huang Renxun also stated that the company wants to explore new AI markets such as industrial robots and plans to collaborate with every computer manufacturer and cloud provider, saying that the next wave of AI will bring automation to heavy industries worth 50 trillion USD.
He pointed out that Nvidia's AI chips provide customers with the lowest hold cost, and although other companies' products may be cheaper in unit price, Nvidia's products are the most economically valuable considering performance and operating costs.
Huang Renxun said that Nvidia has achieved a virtuous cycle, which in the technology industry means that when a platform has enough customers, it only needs to make some necessary improvements to attract more customers.
In response to a shareholder question about the quantum computing program, Huang Renxun revealed his belief that "practical quantum computing still requires decades of time, and when it arrives, computing algorithms will be a combination of acceleration methods and quantum methods."
When asked how to solve the tight semiconductor manufacturing capacity, Huang Renxun stated that Nvidia has the expertise and scale needed to develop a flexible supply chain. He also added that the company can sign long-term supply agreements or prepay for manufacturing capacity costs to ensure that it can meet customer demand.
Citigroup analyst Atif Malik recently raised Nvidia's target price from 126 USD to 150 USD in his latest research report. Malik believes that AI agents have the opportunity to drive a new wave of demand for Nvidia chips.
Edited by Jeffrey