After Jensen Huang's speech, NVIDIA and Wall Street held a meeting, and here are the highlights

At the highly anticipated GTC conference on Wednesday, NVIDIA CEO Jensen Huang, after concluding his keynote speech, engaged in an exciting communication with the company's management team and Wall Street investors and analysts.

Deutsche Bank and Citibank summarized after participating in the Q&A session that NVIDIA's management shows high confidence in the continued strong demand for AI chips. The company has currently received orders for approximately 3.6 million Blackwell GPU units, highlighting the strong market demand. Meanwhile, management expects the company's future gross margin to rise to 75%.

The Rise of Data Centers and AI Factories, Strong Demand for AI Remains

Jensen Huang reiterated his belief that AI demand will not only remain strong but is also widely expanding across application fields. He specifically pointed out the ongoing investments from cloud service providers (CSPs), as well as another significant but less discussed driving factor: enterprise IT modernization (which accounts for about half of global IT spending) and robotics (which is applied not only in the automotive sector but also more broadly in industrial IoT).

As the world rapidly shifts from general computing to AI-accelerated platforms, NVIDIA's management is confident about the company's prospects in the data center market. They believe that as AI applications become more widespread, the demand for data centers will increase significantly, and NVIDIA, with its advantages in GPU technology and AI solutions, will capture a larger share of this market.

Additionally, management pointed out that current industry forecasts for data center capital expenditures may underestimate the potential investment scale of AI factories. In the future, as AI factories are built, it is expected that trillions of dollars will be invested in this area, presenting huge market opportunities for NVIDIA.

Demand for Inference Will Far Exceed Demand for Training

Inference is a key link in AI applications, requiring substantial computing resources and efficient software support. Management stated that as AI applications continue to proliferate, the demand for inference will far exceed the demand for training, and currently, the number of computers used for inference is far from sufficient.

According to management, NVIDIA's Dynamo platform can achieve large-scale inference operations to meet the needs of AI applications in practical deployment.

Astonishing Order Volume, Strong Demand for Blackwell Series

Management clarified a metric discussed in yesterday's keynote speech, emphasizing that approximately 1.3 million Hopper units and about 3.6 million Blackwell units have been shipped. They noted that these Blackwell figures reflect total order volume (not shipment volume), highlighting the strong market demand in the face of ongoing concerns since the DeepSeek announcement.

With increased production and reduced costs, the profit margin for Blackwell is expected to further improve. Additionally, management anticipates that future AI factories will be built independently of CSPs, further driving the demand growth for Blackwell.

Limited Geopolitical Impact

The company responded positively to questions regarding geopolitical issues, stating that they do not believe tariffs will have a significant impact on any part of their business. They believe that if the U.S. economy enters a recession, investments will shift more towards the AI sector, as it is the fastest-growing areaRegarding the tariff issue, the management stated that the short-term impact is limited, and the company is already preparing for local manufacturing (such as TSMC's Arizona factory) to address potential supply chain issues.

Gross margin is expected to rise to 75% level, maintaining long-term stability

The management expressed strong confidence in future gross margins, expecting to achieve a gross margin level of around 75% within a year (compared to the current low 70% level). More importantly, they believe that long-term gross margins will remain more stable, and the new generation of products after Blackwell will benefit from the learning curve improvements the company has already achieved in rack-level solutions