NVIDIA conference call update: Demand for H200 and Blackwell is well-ahead of supply and expect demand may exceed supply into next year (949.50 -4.36)
- Large cloud providers continue to drive growth as they deploy and ramp NVIDIA AI infrastructure at-scale, representing the mid-40s as a percentage of Data Center revenue.
- Expect Automotive to be largest enterprise vertical within Data Center this year, driving a multi-billion revenue opportunity across on-prem and cloud consumption.
- Consumer internet companies are also a strong growth vertical.
- From a geographic perspective, Data Center revenue continues to diversify as countries around the world invest in sovereign AI. Believe sovereign AI revenue can approach the high single-digit billions this year.
- Nations are building up domestic computing capacity through various models, procuring an operating sovereign AI cloud in collaboration with state-owned telecommunication providers or utilities or sponsoring local cloud partners to provide a shared AI computing platform .
- Ramped new products designed specifically for China that do not require a support control license. Data Center revenue in China is down significantly from the level prior to the imposition of the new export control restrictions in October. Expect the market in China to remain very competitive going forward.
- Blackwell is in full production. Demand for H200 and Blackwell is well-ahead of supply and expect demand may exceed supply well into next year.
- GeForce RTX GPU market reception is strong and end demand and channel inventory remain healthy across the product range.
- Believe generative AI and Omniverse industrial digitization will drive the next wave of Professional Visualization growth.