Nvidia seeks to ramp up AI growth with souped-up chips

“The challenge in our view is … making the products reliable enough, cheap enough and pervasive enough to spawn credible business models,” Arya said in a note to clients. “From that perspective, robotics could remain another cool but niche opportunity such as metaverse or autonomous cars.”

Huang also unveiled new gaming chips that use Nvidia’s Blackwell AI technology, which has helped propel its sales in data centres.

The chips, which Nvidia calls its RTX 50 series, aim to give video games movie-like graphics, especially in a field known as “shaders”, which can help images like a ceramic teapot look more realistic by adding imperfections and fingerprint smudges to its surface.

The new chips can also help game developers generate more accurate human faces, an area where players are apt to notice even slightly unrealistic features. The chips will range in price from $US549 ($875) to $US1999 ($3187), with top models arriving on January 30 in the United States and lower-tier models coming in February.

Ben Bajarin, chief executive of technology consultancy Creative Strategies, said the new gaming chips should help boost Nvidia sales in the short term.

Huang also showed off Nvidia’s first desktop computer – one designed for computer programmers rather than regular consumers – called Project DIGITS.

Costing $US3000 ($4782) and running an Nvidia operating system based on Linux, it will feature the same chip at the heart of the company’s data centre offerings, but paired with a central processor built with help from Taiwan’s MediaTek.

The chips will come in a smaller package that can be used by individual software developers to test their AI systems quickly.

Nvidia said Japan’s Toyota Motor Corporation would use its Orin chips and automotive operating system to power advanced driver assistance in several models. It did not give details about the models. Toyota’s shares were up 1.7 per cent in late Tokyo trade.

Huang expects automotive hardware and software revenue of $US5 billion in fiscal 2026, up from an expected $US4 billion this year.

Nvidia’s stock closed at a record high of $US149.43 on Monday, bringing its valuation to $US3.66 trillion and making it the world’s second-most valuable listed company behind Apple.

Reuters

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