00:00NVIDIA beats on revenue and guidance, adds $80 billion to buyback plan.
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00:14NVIDIA's custom AI chip that was the result of its $20 billion acquisition of GroxTech
00:20will be a niche product for some time, Huang said on the earnings call Wednesday.
00:24That's despite signs that big tech is hungry for alternatives to the company's costly,
00:29sold-out GPUs.
00:31NVIDIA unveiled a new Grok language processing unit at its annual GTC conference in March,
00:37as well as an entire data center rack filled with the custom chips, called LPX.
00:43LPX is designed for low latency and high token rate, but its throughput is low, Huang said.
00:49The use case for LPX is not broad.
00:52The new Grok chips in LPX are an example of what's known as application-specific integrated
00:57circuits, or ASICs.
00:59Their lower power chips programmed for more specific tasks.
01:03Custom ASIC maker Cerebris systems made a blockbuster debut on Thursday, in the clearest
01:09signal yet that the market is hungry for an alternative to NVIDIA's GPUs.
01:14ASICs are also made in-house by the likes of Google, Amazon, Meta, and Microsoft, while an
01:19increasing number of startups like SambaNova and D-Matrix are entering the space.
01:24Huang explained the company's decision to overhaul its quarterly earnings that will break the
01:29reporting into two segments, data center, which has two subgroups, and edge computing.
01:34On the segmentation and the description of the business, we wanted you to understand our
01:39business better, Huang told analysts during the earnings call.
01:42Huang pointed to AI as the nexus of the company's overall business, but some companies have vastly
01:48different technology approaches and initiatives than others.
01:51While hyperscalers like Meta and Alphabet might be buying tons of computing gear and related
01:57GPUs as part of their gigantic data center build-out plans, governments and smaller businesses have
02:03different computing requirements, as do the companies researching cutting-edge robotics.
02:08It's the simplest way of understanding our business, Huang said.
02:12Each one of them have different stacks in a lot of ways.
02:15They have different operating systems.
02:17They operate in a different way, and we go to market very differently in each one of them.
02:22NVIDIA expects its next rack-scale system for AI, Vera Rubin, will be even more successful
02:29than Grace Blackwell, Huang said on the earnings call.
02:32The primary reason, Huang added, is because we're growing share and inference very, very quickly
02:38as the number of frontier model companies grows.
02:41He cited Anthropic as a key new customer this year, providing secure compute for Microsoft Azure,
02:47Amazon Web Services, and CoreWeave.
02:50The Vera Rubin system is comprised of 1.3 million components, including 72 Rubin GPUs and 36 Vera CPUs.
02:59NVIDIA says it delivers 10 times more performance per what than its predecessor, Grace Blackwell.
03:05Huang said he anticipates that NVIDIA will be constrained throughout the entire life of Vera Rubin.
03:11NVIDIA is aiming to become the world's leading CPU supplier, CFO Colette Kress said on the earnings call.
03:19It's a lane currently dominated by competitors Intel and advanced micro-devices.
03:23The company's new Vera central processing unit opens a brand-new $200 billion tab for NVIDIA, Kress said,
03:32adding that every major hyperscale and system maker is partnering with us to get it deployed.
03:37She anticipated $20 billion in total CPU revenue this year.
03:42Until now, NVIDIA has led the AI boom with its graphics processing units that excel at the parallel math necessary
03:50for training large models.
03:51But as agentic AI shifts compute needs, the once-quiet CPU market has seen a major resurgence.
03:58NVIDIA unveiled an entire CPU-only rack at its annual GTC conference in March.
04:05Hyperscalers made up more than half of all data center revenue, reaching $38 billion
04:10and increasing 12% quarter-over-quarter, CFO Colette Kress said on a call Wednesday.
04:21The other $37 billion portion of data center revenue comes from a segment NVIDIA's calling SAE.
04:29It's tied to AI cloud's industrial and enterprise markets, Kress said AI cloud revenue more than doubled year-over-year.
04:38NVIDIA is now enabling rapid stand-up of AI compute capacity in more than 80 data centers that exceeds 10
04:47MW Kress.
04:48NVIDIA gives Middle East's update.
04:52NVIDIA revealed Wednesday in a 10K feeling that its global supply chain has yet to experience any significant impact
05:01from instability in the Middle East due to the U.S.-Iran conflict, which began in February 2026.
05:10Our global supply chain for our networking products, including our Israel operation of approximately 5,900 employees,
05:20supporting research and development operations, and sales and marketing has not been significantly impacted by the conflict in the Middle
05:28East,
05:28the company said in the film.
05:30Still, NVIDIA noted that if the conflict escalates or extends its cloud,
05:38affects future product development, software chain, and revenue and create business uncertainty.
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