The next-generation AI chip 'Blackwell' from Nvidia is expected to bring growth and industry transformation.

As the leader in the AI chip industry, Nvidia is gearing up for the third-quarter earnings release, with sales expected to increase by 82% to $33.04 billion year-on-year and profits forecasted to rise by 88%. Furthermore, the upcoming launch of the next-generation processor 'Blackwell' in the fourth quarter has heightened expectations.
The significant investments from major companies like Amazon and Meta, as well as others, are considered factors rapidly expanding the demand for Nvidia's AI technology, leading to a steady increase in the company's stock price following the analysts' upward revisions.
However, supply chain constraints are also a risk factor casting a shadow on Nvidia's growth. Discussions among governments and industries regarding the societal and environmental impacts of energy consumption and technological advancements are increasing. Nvidia's innovation is expected to lead to transformation not only in the technology industry but also in a wide range of fields such as healthcare and agriculture, bringing about new aspects to social structures and labor markets.

Nvidia's next-generation AI processor, "Blackwell," planned for the fourth quarter, not only represents a mere technological evolution but also holds the potential to dramatically expand the competition and application range of the AI industry. This chip is designed to perform vast data processing more quickly and efficiently compared to current models such as H100 and H200, with significant achievements expected in the field of cloud data centers.
Cloud giants such as Amazon and Meta have already made massive investments in Nvidia's technology, expected to serve as the foundation for significantly enhancing the operational efficiency of both companies' data centers.
The performance improvement of "Blackwell" may not only accelerate the learning speed of AI algorithms but also enhance energy efficiency. If realized, this would further increase the value as a sustainable technology. On the other hand, as pointed out by Christopher Roland of Susquehanna Financial Group, the potential shortage in supply could become a short-term challenge. The flexibility of the manufacturing supply chain is expected to be a crucial key to ensuring stable supply in the future, as many data centers are transitioning to "Blackwell."

Nvidia's AI chips are rapidly being utilized in areas such as healthcare, agriculture, and even self-driving cars. In the healthcare sector particularly, the streamlining of diagnosis and treatment planning has been achieved, enabling accurate and prompt decision-making in medical settings. Additionally, Nvidia's AI technology is becoming a supporting element for smart agriculture, leading to increased harvest yields and the promotion of sustainable agriculture. This shift towards production systems not reliant on traditional labor forces is expected to further enhance efficiency.
However, the societal impacts brought about by Nvidia's technology are also significant. With the spread of automation, concerns arise about potential job losses, while simultaneously, the creation of new job opportunities is progressing. In the rapidly evolving landscape of technological innovation, companies and educational institutions are expected to promote the implementation of reskilling programs, as emphasized by Sreeni Pajjuri of Raymond James, to expand employment opportunities in the technology sector.

High-performance AI chips possess immense computing power, leading to a corresponding increase in energy consumption. While the performance enhancements of Nvidia's AI processors such as H100 and "Blackwell" dramatically streamline data-aggregated tasks, sustainable energy consumption is emerging as a future challenge. Particularly, the sharp rise in energy consumption in data centers could pose an environmental burden, prompting the need for measures in terms of sustainability from a corporate perspective.
In response to the energy consumption issue, Nvidia is exploring energy-efficient chip designs and the utilization of renewable energy. However, achieving sustainable technology operations at an industry-wide level requires further research and collaboration. Governments and regulatory bodies around the world are also required to develop policies that anticipate the impact of rapidly evolving AI technologies on the environment and society, and to advance the framework for maintaining a balance between technological advancements and sustainability.

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