On Tuesday, October 8th, at the "AI Summit DC" artificial intelligence summit in the United States capital Washington, D.C., executives from the "AI darling" Nvidia company stated that their next-generation Blackwell chip will be shipped to customers in the fourth quarter of this year, with excellent energy efficiency.

Nvidia: The Blackwell platform is basically built with energy efficiency in mind, and Nvidia also has many software services.

Nvidia Vice President and General Manager of Enterprise Platforms Bob Pette said, "The Blackwell platform is basically built with energy efficiency in mind," developing OpenAI's GPT-4 software on Blackwell requires 3 gigawatts of power, compared to the 5500 gigawatts needed for the same process ten years ago. Some analysts have raised concerns about the power consumption generated by the artificial intelligence computing frenzy.

In a presentation titled "The Transformational Forces Accelerating Computing and Artificial Intelligence," the above-mentioned executives introduced how Nvidia's accelerated computing platform is providing breakthrough performance in the next wave of AI, sensor processing, digital twin, cybersecurity, autonomous systems, and other fields.

He also emphasized Nvidia's artificial intelligence software services and various software platforms. Some analysts suggest that selling software is part of Nvidia's strategy, aiming to ensure that customers not only seek the company's popular AI chip processors, but also bring in recurring revenue sources beyond hardware sales. By showcasing software, Nvidia hopes to prove that they are more than just a chip company:

"On one hand, highlighting its software can attract developers to use Nvidia's products. The more developers based on its services, the more companies will seek to use these Nvidia software platforms.

At the same time, Nvidia faces increasingly fierce competition from long-term rivals such as AMD and Intel in the hardware field. Customers are also developing self-made chips to support AI software, which could weaken Nvidia's profits in the future, so the company's ultimate goal is to retain customers by using software."

The AI summit event on Tuesday propelled Nvidia's stock price to rise by a maximum of 4.1% at the opening, to the highest level in three months since July 11th. Nvidia has risen for five consecutive days, with a market cap exceeding 0.032 million USD, surpassing Microsoft on Monday to become the world's second largest company by market cap, second only to Apple.

Over the past month, Nvidia's stock price has been in an upward channel, up over 28% since the September 6th report that the US Department of Justice sought to investigate its low-level rebound, mainly due to CEO Huang Renxun and various partners creating momentum, claiming that demand for the next generation AI chip Blackwell is "crazy".

On Tuesday, Nvidia's chip foundry Hon Hai Precision Industry Co., Ltd. confirmed the construction of the world's largest GB200 production facility in Mexico, seen by the market as strong evidence of long-term demand for Blackwell chips.

Nvidia: Actively expanding the application scope of AI technology to more fields, laying the foundation for a new industrial revolution, especially with the potential to transform the medical industry.

In terms of software progress, according to Nvidia executives today, the company has multiple AI software platforms including Nvidia NIM Agent Blueprints, NIM, and NeMo. Among them, NIM Agent Blueprints aims to help companies develop generative AI applications, NIM can quickly combine chatbots and AI assistants, NeMo provides enterprises with methods to build custom generative AI models.

From US telecom giant AT&T, international accounting firm Deloitte, AI and machine learning software service provider Quantiphi, to the US National Cancer Institute and the SETI Institute searching for extraterrestrial civilizations, research institutions are using Nvidia's software technology to help employees complete software development and network engineering work, and even search for signs of alien life.

For example, AT&T is collaborating with Quantiphi to create a conversational AI platform to assist employees in software development and financial service tasks. The University of Florida in the USA is using Nvidia's NIM and NeMo platforms to enhance a learning management system for teaching assistants; Deloitte integrates Nvidia NIM Agent Blueprint with its own cybersecurity products, the US National Cancer Institute uses it to help reduce time and cost in developing new drug molecules; the SETI Institute uses Nvidia's Holoscan software toolkit to develop software for receiving and analyzing space radio waves.

Furthermore, Nvidia has also partnered with Carnegie Mellon University and the University of Pittsburgh to establish two new AI technology community centers. The "Nvidia Robotics, Autonomous, and AI Center" jointly established with Carnegie Mellon University will provide students, teachers, and researchers with related technologies on robots and autonomy; the "AI and Intelligent Systems Center" in collaboration with the University of Pittsburgh will focus on AI for health science.

Additionally, on Tuesday, Google announced that Nvidia's Nvidia Nim is available on the Google Kubernetes Engine, while Taiwan Semiconductor Manufacturing Company is using Nvidia's computational lithography platform Culitho for production.

Nvidia executives said that they are "leading" the expansion of AI technology into more areas, laying the foundation for a new industrial revolution. This initiative also includes finding more customized uses for artificial intelligence:

"Although tools like OpenAI's ChatGPT are often useful, they tend to repeat content we publish on the internet, such services will not find methods to cure cancer or help operate specific business operations.

Instead, people need a more customized, smaller artificial intelligence model tailored for specific purposes. This software is part of Nvidia's expanding product and service portfolio, with the overall goal of helping companies more easily integrate everything needed for using artificial intelligence."

The executive specifically mentioned that AI is likely to transform the medical care industry, with Nvidia having been preparing for this shift over the past decade through drug development business.

The latest Morgan Stanley research report is bullish on Blackwell's strongest chip's revenue potential, with Nvidia expecting increased production to continue from the fourth quarter through 2026.

On the same day, mainstream investment bank Morgan Stanley also released a research report, expressing optimism about the potential boost to the company's revenue from Blackwell's next-generation strongest chip in the last few months of this year, and hinting that as early as the beginning of next year, Blackwell's output will surpass the existing Hopper chip:

"Based on our checks on the GPU test supply chain, Blackwell chip production in the fourth quarter should be around 0.25 to 0.3 million units, contributing $5 billion to $10 billion in revenue. This still aligns with Morgan Stanley's chief analyst Joe Moore's optimistic predictions. Blackwell chip production may reach 0.75 to 0.8 million units early next year, nearly tripling from the fourth quarter of this year."

At the same time, we expect Hopper chip sales (including H200 and H20) to be around 1.5 million units in the fourth quarter, gradually declining to 1 million in the first quarter of 2025. Considering that Blackwell's B200 chip is priced about 60% to 70% higher than Hopper's H200, the revenue from Blackwell is expected to exceed Hopper's in the first quarter of 2025.

Another analyst also released a bullish report on Nvidia on Monday. Melius Research analyst Ben Reitzes stated that despite Nvidia's stock price having experienced a long period of rebound, the "current situation still looks quite good":

"Strong spending in AI by Microsoft, Alphabet, and companies like ChatGPT's parent company OpenAI is expected to continue to drive consumption of Nvidia's core GPU products."

Nvidia's CFO Colette Kress had previously estimated in August that the company's fourth fiscal quarter ending in January next year will ship Blackwell chips worth billions of dollars. Nvidia also recently announced modifications to the Blackwell GPU masks to improve production yield, with production ramping up in the fourth quarter and continuing into the fiscal year 2026.

Editor/Lambor