Nvidia CEO expects to win outsized chunk of data centre spending

Nvidia Corp Chief Executive Officer Jensen Huang said his company is well placed to grab an outsized chunk of worldwide spending on data centre equipment because of the variety of chips and software it’s producing.

Nvidia’s leader said $250 billion will be spent on data centre gear annually and his company is positioned to take a bigger share than other chipmakers. Nvidia is working to produce software to allow the adoption and use of artificial intelligence techniques in a wide variety of industries. The company provides AI models and other software, then charges customers according to how much computer power and how many chips they use to run it.

“My expectation is that it’s going to be a very large business,” Huang said Tuesday at an event for investors in San Jose, California.

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Nvidia is in the second day of a conference that’s taken over downtown San Jose. The company Monday unveiled new products that are the successor to its powerful chips that have been central to the explosion in deployment of AI systems. That surge has made Nvidia one of the world’s most valuable companies and more than doubled its revenue.

The shares rose less than 1% to $888 at 12:42 p.m. in New York after earlier declining as much as 3.9%. The stock jumped 79% this year through Monday’s close.

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William Murphy

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