Jen-Hsun Huang Bullish on Gaming, AI and Data-Centers

[DooKey]

For those of us that keep track of tech companies it's no surprise that Nvidia had $2.6 billion in revenue last quarter. On the heels of that announcement the folks at Venture Beat interviewed Nvidia's CEO and his responses are interesting to say the least.

Jensen Huang, CEO of Santa Clara, California-based Nvidia, said his company started investing in AI seven years ago, and that its latest AI chips are the result of years of work by several thousand engineers. That has given the company an edge in AI, and other rivals are scrambling to keep up, he said.

 

[Exercate]

Jen-Hsun Huang Bullish on Gaming, AI and Data-Centers

Well, Duh! Isn't that where the $$ is at?

 

[PeaKr]

He left out CRYPTOMINING

 

[MavericK]

He left out CRYPTOMINING

Nope, still gaming...throw your money into a hole and hope more money pops out!

 

[odditory]

He left out crytomining

Not really. Unnecessary risk and speculation on cryptocurrency isn't part of his business model. There is no upside for Nvidia to ramping up GPU production to cater to mining, or creating mining-specific hardware - none. Only downsides.

Mining cooling off and millions of GPU's simultaneously entering secondhand channels = huge downward pressure on average selling prices = longterm chilling effect on IP and perceived value = cancer for Nvidia.

And I say that as someone that only buys Nvidia for cryptomining. He's doing the right thing, and that is treating mining as he should: something to be kept at arm's length.

 

[PeaKr]

So this breakout in the chart here that occurred about the same time the ethereum/crypto craze took off is all based on gaming, ai and data-centers then, ok.

https://www.investing.com/equities/nvidia-corp-chart

Looks like the same thing happened to AMD stock too, hrm that's weird.

https://www.investing.com/equities/adv-micro-device-chart

notice the dip after vega failure.

 

[shad0w4life]

Oddly they had very similar beat as AMD but didn't tank to my dismay, I used my shares to hedge some puts.

Think they are running out of surprise earnings soon, attributing crypto mining to strong game demans sales is kind misleading.

 

[Deleted member 93354]

I need to wear hip boots to wade through the half truths flooding from his mouth. What he says is misleading, and demonstrably false. That might work for the average investor, but not true tech people. Understand I'm not angry at all. But I find it disturbing when a leader of a large company is so blatantly misleading.

Every time he sounds off like this, I respect him less and less. Yes I realize he's just pushing his company. But I don't trust a man who isn't being 100% truthful just to protect his stock value.

And I called it. The real money is in data processing/AI. Although the high of gaming end is super profitable, the margins AI sector is just obscenely ludicrous.

 

[serious]

He left out CRYPTOMINING

He didn't. It seems he don't want to openly promote/support crypto-currency. How did they measure gaming sales? By unit of video cards sold? Well, I don't think everyone who brought 1070 use it for competitive gaming.

 

[stealthballer123]

Oddly they had very similar beat as AMD but didn't tank to my dismay, I used my shares to hedge some puts.

Think they are running out of surprise earnings soon, attributing crypto mining to strong game demans sales is kind misleading.

amd is always down on positive news, and the big firms like citi were telegraphing the price drop for a couple weeks before amd earnings.
AMD gets knocked around by wall street firms a lot. It's been a pretty safe bet to short amd on earnings for a while now.

 

[cdabc123]

I feel like they are taking the wrong stance on mining. Miners will buy cards anyway and if mineing dies those cards will flood the used market killing all but the very high end market. If they made cards just for mining with no display miners would buy then now then I'd mineing dies all these cards are practically useless in the used market forcing people to by new cards. The only downside is it would have is if mining dies literally within a week of the cards release and they would have to publicly talk about mining

 

[tetris42]

He didn't. It seems he don't want to openly promote/support crypto-currency. How did they measure gaming sales? By unit of video cards sold? Well, I don't think everyone who brought 1070 use it for competitive gaming.

Even before cryptocurrency really started taking off, PC gaming had been an in upward spiral since... well the past 10 years at least. You can use any metric you want; sales of videocards, game sales, revenue from game companies, percentage of sales on PC platform. It's all been going up.

 

[meanmodda[H]]

I don't buy AMD/Nvidia numbers on crypto related sales. On one side they play down the significance yet clearly release cards aimed at mining.

 

[Denpepe]

I feel like they are taking the wrong stance on mining. Miners will buy cards anyway and if mineing dies those cards will flood the used market killing all but the very high end market. If they made cards just for mining with no display miners would buy then now then I'd mineing dies all these cards are practically useless in the used market forcing people to by new cards. The only downside is it would have is if mining dies literally within a week of the cards release and they would have to publicly talk about mining

Not sure this will work, miners will most likely prefer cards with some resale value vs none when buying cards, unless they are so much cheaper it become irrelevant.

 

[c3k]

So, will this Nvidia AI investment make my video cards empower the AI enemies in my games???

 

[Deleted member 93354]

So, will this Nvidia AI investment make my video cards empower the AI enemies in my games???

If AI only worked that way! (Instant learning and adaptable) It would give Kyle at least a good weeks worth of postings about how "AI is going to kill us all!"

 

[DPI]

I don't buy AMD/Nvidia numbers on crypto related sales. On one side they play down the significance yet clearly release cards aimed at mining.

Citation needed. Where has Nvidia "clearly released card(s) aimed at mining?" Be specific.

 

[Deleted member 93354]

I feel like they are taking the wrong stance on mining. Miners will buy cards anyway and if mineing dies those cards will flood the used market killing all but the very high end market. If they made cards just for mining with no display miners would buy then now then I'd mineing dies all these cards are practically useless in the used market forcing people to by new cards. The only downside is it would have is if mining dies literally within a week of the cards release and they would have to publicly talk about mining

They can profit from it only as long as people are willing to pay obscene amounts of money for virtual currency. And that is an unproven track record. The whole thing could come tumbling down like the Dutch bulb market. Especially with new competing Fiat currencies constantly popping up.

They will face the same situation when states all issued their own currency. (Early in US history). Eventually it will not be accepted by merchants because it's actual value will be questioned.

Now I will grant you it cost them near nothing to make a regular card a mining specific one. But CEOs realize they can't count on it.

 

[stealthballer123]

China has giant factories mining crypto, it's not going away.
it's not going to implode and dissolve, it's going to grow, and I wouldn't be shocked if china mainstreams it in their day to day lives.

There is an enormous amount of money that was invested in this, that's how the value was established.
A lot of old time ways of looking at things are no longer entirely valid.

 

[Deleted member 93354]

China has giant factories mining crypto, it's not going away.
it's not going to implode and dissolve, it's going to grow, and I wouldn't be shocked if china mainstreams it in their day to day lives.

The Dutch thought the same of the bulb market. There was massive speculation on value. An oversupply and rampant speculation brought about it's crash. The same thing crypto currency is heading for.

Just remember there are countries in South East Asia are already banning it. Communist ologarchies don't like losing control over the peasants and them hiding how they spend their money. Case in point: VPN's and relays are banned.

These two things (competing currencies and gov't acceptance) will bear great weight on the success of crypto currency.

 

[tetris42]

The Dutch thought the same of the bulb market. There was massive speculation on value. An oversupply and rampant speculation brought about it's crash. The same thing crypto currency is heading for.

Just out of curiosity, when are we talking here? Obviously, you're not psychic, but a year? 2 years? 25 years? I'm just curious what timetable you're talking here.

 

[serious]

Even before cryptocurrency really started taking off, PC gaming had been an in upward spiral since... well the past 10 years at least. You can use any metric you want; sales of videocards, game sales, revenue from game companies, percentage of sales on PC platform. It's all been going up.

Don't get me wrong, Nvidia has been doing great. I am simply referring to the crypto-currency business. I heard the earning call and the way he describe crypto-currency movement is cryptic, how ASIC will corner existing crypto-currencies and how new ones will arise.

Gaming is big, especially on the other side of the world, but I don't think it is big enough to contribute 60% of Nvidia's total revenue. It isn't really that difficult to find out how many of those they claim it is from gaming, simply separate 1070 sales and assume those are for crypto-mining and we will be able to see how many are actually from gaming.

 

[stealthballer123]

The Dutch thought the same of the bulb market. There was massive speculation on value. An oversupply and rampant speculation brought about it's crash. The same thing crypto currency is heading for.

Just remember there are countries in South East Asia are already banning it. Communist ologarchies don't like losing control over the peasants and them hiding how they spend their money. Case in point: VPN's and relays are banned.

These two things (competing currencies and gov't acceptance) will bear great weight on the success of crypto currency.

Just remember the impact it would have to suddenly remove the income from that many people. The chinese government is, in all likelyhood, making money through crypto as well.

Tangible commodities do not have a direct comparison to crypto.

Those oligarchs made a bunch of money on bitcoin, they won't let it collapse.

 

[Comixbooks]

Cyberdyne

 

[_l_]

"Huang: I am conflicted by that. I happen to believe that video games will be the largest sport and entertainment in the world. The reason for that is a video game can be every sport. You can be anybody."

and then there was Mass Effect Andromeda, Mirror's Edge Catalyst, etc ... no wonder he said he's conflicted about the future of gaming ...

 

[Deleted member 93354]

Just remember the impact it would have to suddenly remove the income from that many people. The chinese government is, in all likelyhood, making money through crypto as well.

Tangible commodities do not have a direct comparison to crypto.

Those oligarchs made a bunch of money on bitcoin, they won't let it collapse.

"Too big to fail because of what everyone has invested in it"

Said the equities and real estate market in 2007

Said the junk bond market in the early 90's

Said the over extension of credit 1929

The only people who say crypto won't fail have "I'm invested in it" blinders. Why face the possibility of failure when you are getting free money producing nothing?

 

[cdabc123]

"Too big to fail because of what everyone has invested in it"

Said the equities and real estate market in 2007

Said the junk bond market in the early 90's

Said the over extension of credit 1929

The only people who say crypto won't fail have "I'm invested in it" blinders. Why face the possibility of failure when you are getting free money producing nothing?

Unlike many of the above Bitcoin has no actual value. That allows its price to be literally anything without negative consequences. It could hit 1 million a coin or on the other end 1$ the only thing that controls the price is what people are willing to pay and what people are willing to sell for. There never has to be a crash and with cryptos there normally isn't. They can slowly decline into nothing as people stop caring but as long as there is interest there will be a lot of money.

 

[Deleted member 93354]

Unlike many of the above Bitcoin has no actual value. That allows its price to be literally anything without negative consequences. It could hit 1 million a coin or on the other end 1$ the only thing that controls the price is what people are willing to pay and what people are willing to sell for. There never has to be a crash and with cryptos there normally isn't. They can slowly decline into nothing as people stop caring but as long as there is interest there will be a lot of money.

Just like a Ponzi scheme.

Sooner of later its own weight will collapse it.

 

[Deleted member 93354]

Unlike many of the above Bitcoin has no actual value. That allows its price to be literally anything without negative consequences. It could hit 1 million a coin or on the other end 1$ the only thing that controls the price is what people are willing to pay and what people are willing to sell for. There never has to be a crash and with cryptos there normally isn't. They can slowly decline into nothing as people stop caring but as long as there is interest there will be a lot of money.

You know why people invest in Ponzi scheme? Because they can't ignore the incredible returns. But the weight of the system eventually collapses it.

 

[cdabc123]

You know why people invest in Ponzi scheme? Because they can't ignore the incredible returns. But the weight of the system eventually collapses it.

MANY people are in cryptos for reasons other then just expecting massive returns. But then again this argument has been had many times before so i dont feel like umping into it right now. let time show who was correct.

 

[Deleted member 93354]

MANY people are in cryptos for reasons other then just expecting massive returns. But then again this argument has been had many times before so i dont feel like umping into it right now. let time show who was correct.

True there are idealogs who believe a non traceable currency will be used to buy lollypops and puppy dogs all the time.

But since Bitcoin and it's immediate derived blocks chains can serve the entirety of the public, why are people mining etherium coin hive etc?

Oh yes that's right: They want to get f'n rich because Bitcoin is too hard to mine now for all but the largest players.

But you are right time will tell.

 

[Flogger23m]

I feel like they are taking the wrong stance on mining. Miners will buy cards anyway and if mineing dies those cards will flood the used market killing all but the very high end market. If they made cards just for mining with no display miners would buy then now then I'd mineing dies all these cards are practically useless in the used market forcing people to by new cards. The only downside is it would have is if mining dies literally within a week of the cards release and they would have to publicly talk about mining

Well if/when mining dies down, then miners will have hardware they can't sell for much of anything. A flood of used RX580s or GTX 1070s may bring down their potential returns from selling unneeded hardware, but the potential loss of selling mining cards in a flooded market with little demand is even greater. I think that is why miners would be willing to pay $20-30 more upfront.

 

[cdabc123]

Well if/when mining dies down, then miners will have hardware they can't sell for much of anything. A flood of used RX580s or GTX 1070s may bring down their potential returns from selling unneeded hardware, but the potential loss of selling mining cards in a flooded market with little demand is even greater. I think that is why miners would be willing to pay $20-30 more upfront.

if the company did it right they could sell out all cards in a hour after release as long as mining makes it long enough for them to release the card they are set. and if not lable them nvidia teslas and ship them out without a display. currently when mining dies the gpu manufactures will be SCREWED as there will be very little reason for anyone to buy anything but dirt cheap used cards.

 

[tetris42]

True there are idealogs who believe a non traceable currency will be used to buy lollypops and puppy dogs all the time.

But since Bitcoin and it's immediate derived blocks chains can serve the entirety of the public, why are people mining etherium coin hive etc?

Oh yes that's right: They want to get f'n rich because Bitcoin is too hard to mine now for all but the largest players.

But you are right time will tell.

And here I thought people also wanted an investment medium that's immune to inflation. I can't say whether Bitcoin will be succeed in the long term or not, but it seems obvious to me SOME cryptocurrency will. There IS a demand for a digital currency that's immune to tampering by governments and central banks. Fiat currency is only as strong as the faith in the government that backs it, and we're entering into continually increased uncertainity along those lines. The bailout combined with round after round of quantitative easing while the average American's situation got worse did not create long term confidence in our economic system. THAT'S what feels more like a Ponzi scheme. Cryptocurrency has its own problems, but its immunity to crap like that has a lasting appeal, regardless of what the current price is fluctuating at.

 

[Shintai]

I need to wear hip boots to wade through the half truths flooding from his mouth. What he says is misleading, and demonstrably false. That might work for the average investor, but not true tech people. Understand I'm not angry at all. But I find it disturbing when a leader of a large company is so blatantly misleading.

Every time he sounds off like this, I respect him less and less. Yes I realize he's just pushing his company. But I don't trust a man who isn't being 100% truthful just to protect his stock value.

And I called it. The real money is in data processing/AI. Although the high of gaming end is super profitable, the margins AI sector is just obscenely ludicrous.

Someone sounds bitter over Nvidias gaming success and the growing gaming market

 

[Deleted member 93354]

Someone sounds bitter over Nvidias gaming success and the growing gaming market

Not at all. But I can breakdown everything he says and SHOW where he's bending the truth or telling half truths.

This is not the first time he's spewed nonsense to boost his company: "Level 5 autonomous cars" I don't think so.

Even I who have projects in AI where machines design themselves know this to be false.

 

[Deleted member 93354]

And here I thought people also wanted an investment medium that's immune to inflation. I can't say whether Bitcoin will be succeed in the long term or not, but it seems obvious to me SOME cryptocurrency will. There IS a demand for a digital currency that's immune to tampering by governments and central banks. Fiat currency is only as strong as the faith in the government that backs it, and we're entering into continually increased uncertainity along those lines. The bailout combined with round after round of quantitative easing while the average American's situation got worse did not create long term confidence in our economic system. THAT'S what feels more like a Ponzi scheme. Cryptocurrency has its own problems, but its immunity to crap like that has a lasting appeal, regardless of what the current price is fluctuating at.

Funny, bit coin has grown at a rate faster than any single company in value. And that's what you call inflation control?

I would consider gold a more stable long term value. If Fiat currency as you suggest will collapse it's value will sky rocket and is based on something physical.

Btw quantitative easing ended a long time ago with Obama. They have been rolling it back slowly.

But Japan has been operating at a near 0 rate since the 90's

 

[Shintai]

But Japan has been operating at a near 0 rate since the 90's

My mortgage here in Denmark is 0.11% and we got a growing AAA economy. Low interest, low risk, high interest, high risk. Coins are just a bubble.

Not at all. But I can breakdown everything he says and SHOW where he's bending the truth or telling half truths.

This is not the first time he's spewed nonsense to boost his company: "Level 5 autonomous cars" I don't think so.

Even I who have projects in AI where machines design themselves know this to be false.

Unlike you he got something to show for it. Nvidia is now worth ~130B$.​

 

[tetris42]

Funny, bit coin has grown at a rate faster than any single company in value. And that's what you call inflation control?

You're talking like you don't know what "inflation" means. Aren't you proving the opposite of the point you're trying to make? The point is, you can't print more Bitcoin. It's kind of uncharted territory. Maybe it's overvalued, maybe it still isn't high enough, who knows. What we do know, is you can't devalue it by printing MORE. Even if it forks again, the original bitcoin is still a fixed and set amount.

Btw quantitative easing ended a long time ago with Obama. They have been rolling it back slowly.

Oh yeah, I'm sure, they'll self correct for a 12 trillion dollar difference in no time. The point is it happened, we had a recession, we had massive bailouts, still have an astronomical debt, and printed dollars to the heavens to make up the difference. Bitcoin, win, lose, or draw, that's simply not an option. The concept of a currency or investment medium completely hands off from government interference has a lot of appeal to investors. Even if bitcoin crashes, I think it's naive to think that SOME cryptocurrency won't emerge as being considered valuable. With the degree of uncertainty in our economic system, it remains in an ongoing demand.

It's like I've said in another thread: If our economy was doing great, operating on rock solid principles, and working out for everyone, then Bitcoin would be worth as much as Monopoly money. There just wouldn't be any point to it. The fact that it's NOT stays more about the state of our economic system than it does about the inherent value of bitcoin.

 

[DPI]

Unlike many of the above Bitcoin has no actual value. That allows its price to be literally anything without negative consequences.

Dear IRS,

Please don't tax my Bitcoin gains, because some new information has come to light. You see, someone on an internet forum said it has "no actual value." You see? I trust this settles the matter.

Warmest,

-BTC holder