Nvidia temporarily became the world's most valuable company in June 2024 with a value of $3.34 trillion, a price that has nearly doubled since the beginning of this year, and although it has now fallen back below Microsoft and Apple for now, it's only a matter of time before the company reclaims the top spot once again.
HPC Cable In a report released at the Bank of America Securities Global Technology Conference 2024, Ian Buck, vice president and general manager of Nvidia’s hyperscale and HPC business, discussed the financial benefits of investing in GPUs.
“For every dollar a cloud provider spends on buying a GPU, they get $5 back over four years,” Buck said. Inference tasks generate even higher ROI: “The ROI is even better here: for every dollar spent, they get $7 back over that same time period, and the number is growing,” he said.
Blackwell Shortage
Nvidia is optimizing its products to meet the growing demand for AI inference, using Nvidia Inference Microservices (NIM), which supports popular AI models such as Llama, Mistral, and Gemma. The company is also focusing on its new Blackwell GPU, which is purpose-built for inference and improved power efficiency.
Initially, supply may be tighter than Nvidia would like, but the company isn’t worried. “With every new technology transition comes a combination of supply and demand challenges. We experienced that certainly with Hopper, and there will be similar types of supply and demand constraints on the Blackwell ramp … later this year and early next year,” Buck said.
Looking ahead, Nvidia has already begun sharing details about its Rubin GPU, announced at Computex and scheduled for release in 2026, with cloud providers. Buck stressed the importance of early collaboration, saying, “It’s very important for us to do that – data centers don’t fall out of the sky, they’re big construction projects.”
Nvidia’s steady progress in AI and GPU technology looks promising for investors, and a $4 trillion market cap seems within reach. However, the path ahead is not so clear. Due to its rapid growth, Nvidia inevitably faces scrutiny from antitrust authorities, and this is not expected to go away any time soon.
