NVIDIA promises investors 700% return on investment

NVIDIA Vice President and General Manager Jan Bach promises investors a 700% return on investment in GPUs that perform artificial intelligence tasks. This was reported by TechRadar.

Ian Buck spoke at the Bank of America Securities Global Technology Conference 2024, where he discussed the financial benefits of investing in GPUs.

“Every dollar a cloud provider spends on buying a GPU, they make it back at $5 over four years,” Buck claimed. “Here [in the field of artificial intelligence] the economics are even better: for every dollar spent, $7 is turned over in that same time period and growing.”

To meet the demand for artificial intelligence, NVIDIA uses Inference Microservices (NIM), which support popular artificial intelligence models such as Llama, Mistral, and Gemma.

The company is also working on a new Blackwell GPU that is specifically designed for artificial intelligence computing and energy efficiency. The company is prepared for the fact that Blackwell may face new supply problems at launch.

“With every new technology transition comes… a mix of challenges of supply and demand. We experienced that certainly with Hopper, and there’ll be similar kinds of supply-demand constraints in the ramp of Blackwell… at the end of this year and going into next year,” says Ian Buck.

NVIDIA temporarily became the most valuable company in the world back in June 2024 with a value of $3.34 trillion. Although the company is now below Microsoft and Apple, NVIDIA is confident that it is only a matter of time before it returns to the top spot.