$NVIDIA (NVDA.US)$ In the third quarter of 2024, NVIDIA can ...

$NVIDIA (NVDA.US)$ In the third quarter of 2024, NVIDIA can be considered to be in a transitional period from the H100 (Hopper architecture) to the next-generation Blackwell architecture.
1. Demand for the H100 is approaching its peak.
H100 has demonstrated overwhelming performance in training and inference processing for AI generation and datacenter applications, maintaining strong demand in 2024. However, as the announcement of the next-generation Blackwell architecture approaches, some customers and the industry may have raised expectations for its performance improvement.

2. Preparation period for Blackwell
Blackwell is predicted to be fully introduced to the market in the fourth quarter and information about its architecture and specifications has started to become clear in the second half of 2024. This was an important stage for NVIDIA to prepare manufacturing chains and transition plans for customers. In fact, TSMC is running at full capacity for GPU chip production.

3. Transitional period of product life cycle

The overlap between the timing of market demand maturity for high-end products (H100) and the introduction of new products (Blackwell) forms what is known as the 'transitional period of product life cycle'. During this period, a strategy is required to smoothly transition to the new product while maintaining demand for current products.

4. NVIDIA's market dominance

To minimize the 'gap' between H100 and Blackwell, Nvidia is expanding its existing H100 product lineup and enhancing its software ecosystem. This allows them to continue maintaining market dominance until Blackwell arrives.

Conclusion

In the 3rd quarter of NVDA, while H100 still plays a central role in the market, the period can be characterized as a transition phase towards Blackwell. It is believed that this was a time when the balance of demand and supply between both architectures was carefully managed, especially against the backdrop of the 'absurd demand' for generated AI. I think the 3rd quarter results were quite successful. I am looking forward to the performance in the upcoming 4th quarter. The stock price has rebounded significantly before market opening, and continuing to hold it will make you a winner in this AI market trend.