(Bloomberg) -- Nvidia Chief Executive Officer Jensen Huang said his company is well placed to grab an outsized chunk of worldwide spending on data center equipment because of the variety of chips and software it’s producing.
The executive said that $250 billion will be spent on data center gear annually and his company is positioned to take a bigger share than other chipmakers.
Nvidia is working to produce software to allow the adoption and use of artificial intelligence techniques in a wide variety of industries. The company provides AI models and other software, then charges customers according to the amount of computer power and chips they use to run it.
“My expectation is that it’s going to be a very large business,” Huang said Tuesday at an event for investors in San Jose, California.
Nvidia is in the second day of a conference that’s taken over downtown San Jose. The company Monday unveiled the successor to its powerful line of Hopper chips, which have been central to the explosion in deployment of AI systems. That surge has made Nvidia one of the world’s most valuable companies and more than doubled its revenue.
The new Blackwell chips are designed to be faster at handling both major AI tasks: the training of models and running them.
The remarks helped fuel a rebound in the stock, which had been down as much as 3.9% earlier Tuesday. It was up almost 1% as of 1:05 p.m. in New York at $892.23. The stock had gained 79% this year through Monday’s close.
Nvidia’s new chips – and the systems they’re built on – will come to market “late this year,” Chief Financial Officer Colette Kress said at the event. While the company is better prepared for a surge in demand than it was with the current generation of products, there still might be supply constraints, she said.
