Nvidia took San Jose by storm this yr, with a record-breaking 25,000 attendees flocking to the San Jose Conference Heart and surrounding downtown buildings. Many workshops, talks, and panels had been so packed that folks needed to lean towards partitions or sit on the ground — and undergo the wrath of organizers shouting instructions to get them to line up correctly.
Nvidia at the moment sits on the prime of the AI world, with record-breaking financials, sky-high revenue margins, and no severe opponents but. However the coming months additionally maintain unprecedented danger for the corporate because it faces U.S. tariffs, DeepSeek, and shifting priorities from prime AI prospects.
At GTC 2025, Nvidia CEO Jensen Huang tried to undertaking confidence, unveiling highly effective new chips, private “supercomputers,” and, in fact, actually cute robots. It was an exhaustive gross sales pitch – one geared toward buyers reeling from Nvidia’s nosediving inventory.
“The extra you purchase, the extra you save,” Huang stated at one level throughout a keynote on Tuesday. “It’s even higher than that. Now, the extra you purchase, the extra you make.”
Inference growth
Greater than something, Nvidia at this yr’s GTC sought to guarantee attendees – and the remainder of the world watching – that demand for its chips gained’t decelerate anytime quickly.
Throughout his keynote, Huang claimed that almost the “whole world received it unsuitable” on conventional AI scaling falling out of vogue. Chinese language AI lab DeepSeek, which earlier this yr launched a extremely environment friendly “reasoning” mannequin referred to as R1, prompted fears amongst buyers that Nvidia’s monster chips might now not be essential for coaching aggressive AI.
However Huang has repeatedly insisted that power-hungry reasoning fashions will, the truth is, drive extra demand for the corporate’s chips, not much less. That’s why at GTC, Huang confirmed off Nvidia’s subsequent line of Vera Rubin GPUs, claiming they’ll carry out inference (that’s, run AI fashions) at roughly double the speed of Nvidia’s present finest Blackwell chip.
The menace to Nvidia’s enterprise that Huang spent much less time addressing was upstarts like Cerebras, Groq, and different low-cost inference {hardware} and cloud suppliers. Almost each hyperscaler is growing a customized chip for inference, if not coaching, as properly. AWS has Graviton and Inferentia (which it’s reportedly aggressively discounting), Google has TPUs, and Microsoft has Cobalt 100.
Alongside the identical vein, tech giants at the moment extraordinarily reliant on Nvidia chips, together with OpenAI and Meta, wish to scale back these ties by way of in-house {hardware} efforts. In the event that they – and the aforementioned different rivals – are profitable, it’ll nearly assuredly weaken Nvidia’s stranglehold on the AI chips market.
That’s maybe why Nvidia’s share worth dipped round 4% following Huang’s keynote. Traders may’ve been holding out hope for “one last item” — or maybe an accelerated launch window. In the long run, they received neither.
Tariff tensions
Nvidia additionally sought to allay worries about tariffs at GTC 2025.
The U.S. hasn’t imposed any tariffs on Taiwan (the place Nvidia will get most of its chips), and Huang claimed tariffs wouldn’t do “vital harm” within the brief run. He stopped in need of promising that Nvidia can be shielded from the long-term financial impacts, nonetheless — no matter kind they finally take.
Nvidia has clearly acquired the Trump Administration’s “America First” message, with Huang pledging at GTC to spend a whole lot of billions of {dollars} on manufacturing within the U.S. Whereas that may assist the corporate diversify its provide chains, it’s additionally an enormous value for Nvidia, whose multitrillion-dollar valuation relies on wholesome revenue margins.
New enterprise
Because it seems to seed and develop companies apart from its core chips line, Nvidia at GTC drew consideration to its new investments in quantum, an business that the corporate has traditionally uncared for. At GTC’s first Quantum Day, Huang apologized to the CEOs of main quantum firms for inflicting a minor inventory crash in January 2025 after he advised that the tech wouldn’t be very helpful for the following 15 to 30 years.
On Tuesday, Nvidia introduced that it might open a brand new heart in Boston, NVAQC, to advance quantum computing in collaboration with “main” {hardware} and software program markers. The middle will, in fact, be outfitted with Nvidia chips, which the corporate says will allow researchers to simulate quantum programs and the fashions essential for quantum error correction.
Within the extra rapid future, Nvidia sees what it’s calling “private AI supercomputers” as a possible new revenue-maker.
At GTC, the corporate launched DGX Spark (beforehand referred to as Undertaking Digits) and DGX Station, each of that are designed to permit customers to prototype, fine-tune, and run AI fashions in a variety of sizes on the edge. Neither is precisely cheap – they retail for 1000’s of {dollars} – however Huang boldly proclaimed that they characterize the way forward for the non-public PC.
“That is the pc of the age of AI,” Huang stated throughout his keynote. “That is what computer systems ought to appear like, and that is what computer systems will run sooner or later.”
We’ll quickly see if prospects agree.
