Wall Street analysts now see signs of continued demand for Nvidia’s AI-focused H100 graphics cards. The chipmaker’s sales were boosted by AI spending from its biggest customers, including Microsoft and Meta Platforms, delighting Nvidia investors.
Unfortunately for Nvidia This boom in stock market value may not last long. In fact, many artificial intelligence companies are now considering alternatives. Limited availability of GPUs due to high demand is causing customers to turn to other AI chip manufacturers like AMD and develop their own chips. For this reason, it is not possible to maintain the rapid progress that Nvidia has shown since the beginning of last year indefinitely.
OpenAI CEO Sam Altman specifically calls for trillions of dollars more to be invested in AI chip infrastructure, dwarfing the current $500 billion chip industry. Altman and Nvidia CEO Jensen Huang actually disagree on how AI chip manufacturing should evolve in the future.
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