NVIDIA GTC AI CONFERENCE
NVIDIA is a central player in the semiconductor and tech industries, due to its leading role in artificial intelligence (AI) and Graphics Processing Unit production. Its AI technologies, and GPUs, are vital in data centers, cloud services, and machine learning applications, and have made NVIDIA an indispensable stock for traders. This year the company has faced trade related tensions and rising competition, but also brought news of more chip sales and collaborations with major companies.
- THE AI INDUSTRY AND NVIDIA
AI has become the next big thing on Wall Street. The artificial intelligence (AI) industry continues to experience huge growth, with projections of a $1 trillion market by 2034. The AI chip market grew strongly in 2024 and is expected to continue in 2025, emphasising the critical role of semiconductor companies like the market leader NVIDIA in transforming both workplaces and the lives of many.
- NVIDIA’s ROLE IN AI
NVIDIA’s AI influence spans hardware, software and ecosystem development. The hardware includes the latest AI models built on the Hopper architecture and the new GeForce RTX 50 Series GPUs. Its software platforms (Omniverse etc) give developers tools to build AI applications. It collaborates with tech companies Amazon and Microsoft for use in robotics and advanced computing. NVIDIA partners with Sony and Samsung via its entertainment systems and is also used by car manufacturers.
- NVIDIA AND “FRENEMIES” MICROSOFT, GOOGLE, META, AMAZON, AMD
NVIDIA is uniquely positioned as both rival and collaborator with other huge tech companies. Google, already a customer of NVIDIA, announced it would spend $75 billion on AI infrastructure. Microsoft, Meta and Amazon have placed large orders for NVIDIA’s H100 and Blackwell chips to train their AI models, equating to hundreds of millions of dollars in revenue. This places the company at the centre of the AI revolution, although rival chip companies AMD and ARM are trying to close the gap.
- NVIDIA IN 2025: POSITIVE DEALS AND CAUTIONARY DRIVERS
NVIDIA’s performance in 2025 has been influenced by a mix of promising growth drivers and cautionary factors. In May Nvidia partnered with Saudi Arabia, which purchased several hundred thousand NVIDIA GPUs. The UAE announced it would buy around 500,000 AI chips. In September NVIDIA and OpenAI announced a partnership with NVIDIA providing systems for OpenAI’s AI infrastructure. NVIDIA continues to release next generation GPUs and AI chips that outperform competitors. US China trade relations on the other hand have been a greater challenge for the company. Earlier in the year Chinese startup DeepSeek showed similar performance on its AI models to that of ChatGPT using older NVIDIA chips. NVIDIA has also faced increasing competition from rival chip producers such as AMD and Intel.
This year NVIDIA has also partnered with Disney and Google on humanoid robotics projects. NVIDIA is working with General Motors on AI for its next gen vehicles and announced the development of AI powered 6G network hardware with Cisco and T-Mobile.
- EARNINGS SEASON PROSPECTS
NVIDIA’s Q3 earnings results are set to be posted in mid November and will be closely watched. The company is estimated to announce revenue worth multiple billions of dollars. But much of the focus will be on CEO Huang’s comments. He may give more information on further partnerships, the adoption of the GPUs, talk about further expansion into new markets and potential future product launches. He may touch upon future guidance and NVIDIA’s trade strategy amid tariff risks.
- GTC AI CONFERENCE
A number of announcements were made by NVIDIA at the AI conference including a partnership with Uber and the unveiling of a new AI Supercomputer, the NVIDIA DGX. CEO Jensen Huang also stated that the company will build seven supercomputers for the US Department of Energy and received $500 billion in bookings for advanced chips. Huang did sound caution on whether the company will be able to sell its AI chips on the Chinese markets due to trade tensions. Huang will meet with President Trump the day before Trump meets with President Xi of China, signalling the importance of the company.
Conclusion
NVIDIA remains the central player in the AI revolution with both its hardware and software being supplied to the largest tech companies in the world. But challenges in 2025 including trade wars and competition remain present. Longer term prospects are strong, but short-term volatility may continue at least until a trade deal is signed with China.