NVIDIA promises up to 700% return upon investing in AI GPUs, eyes $4 trillion market cap

In June 2024, NVIDIA briefly became the world’s most valuable company, hitting a worth of $3.34 trillion. This remarkable milestone represented a near doubling of its value since the start of the year. Although NVIDIA has since slipped behind Microsoft and Apple in valuation, it seems poised to reclaim the top spot before long.

During the Bank of America Securities 2024 Global Technology Conference, Ian Buck, Vice President and General Manager of NVIDIA’s hyperscale and HPC business, highlighted the financial benefits of investing in GPUs.

He mentioned that cloud providers see a substantial return on investment with NVIDIA’s GPUs. For every dollar spent on GPUs, providers can generate five dollars over four years. Even more impressive, Buck pointed out that for inferencing tasks, the profitability is even higher, with a seven-dollar return for each dollar invested in the same period, and this figure is on the rise.

NVIDIA is actively addressing the growing demand for AI inference with products like NVIDIA Inference Microservices (NIMs), which support popular AI models such as Llama, Mistral, and Gemma.

The company is also focusing on its new Blackwell GPU, designed specifically for inference tasks and energy efficiency. Despite potential initial shortages, NVIDIA remains confident. Buck acknowledged that every new technology phase comes with supply and demand challenges, as experienced with their Hopper GPU. Similar constraints are expected as Blackwell is rolled out at the end of this year and into the next.

Looking ahead, NVIDIA has already started discussing its Rubin GPU, slated for a 2026 release, with cloud providers. Buck emphasized the necessity of early collaboration, noting the significant planning required for data centre construction projects.

NVIDIA’s progress in AI and GPU technology positions it as an attractive investment opportunity, with a $4 trillion market cap within sight. However, the path forward is not without obstacles. NVIDIA’s rapid growth has drawn attention from antitrust authorities, and scrutiny in this area is expected to continue.

Overall, NVIDIA’s advancements and strategic planning in AI and GPU technology signal a promising future, with the potential to redefine its standing in the tech world and provide substantial returns for investors.