Right. So, CES. Las Vegas. It’s all very…bright. And full of people talking about the future. Which, frankly, is exhausting. I mean, can’t we just focus on today’s gains? But apparently not. Jensen Huang, the Nvidia CEO, gave a keynote. He said the race is on for AI. Dramatic. Like it’s the Grand National. Or, you know, a particularly competitive round of algorithmic trading.
Units of Nvidia Stock Acquired: 25. Hours Spent Refreshing Portfolio: 17. Number of Times I Considered Just Buying a Beach Hut: 4. It’s the usual story, isn’t it? Nvidia’s GPUs – those clever little chips – are basically the engines powering all this AI stuff. It’s like they’ve built an entire digital world on top of Nvidia’s hardware. Which, logically, means good things for the share price. It’s gone up 1000% in three years. A thousand! I mean, that’s…a lot. Makes my small gains feel rather pathetic, actually.
Huang was talking about how developers are now building AI on top of AI. It’s like a digital inception. Which is clever, I suppose. And terrifying. It also means the whole thing is accelerating. He said the cost of AI is falling, about 10x a year. Which sounds… optimistic. But if it’s true, it means more people can get involved. More developers, more programs, more demand for Nvidia’s chips. It’s a virtuous cycle, apparently. Though I always suspect virtuous cycles have a nasty habit of turning into vicious ones eventually.
He used the example of OpenAI’s o1 model. Apparently, it’s not just giving answers anymore, it’s… thinking. Which is slightly unsettling. I mean, I don’t want my computer to start having existential crises. But apparently, this “thinking process” requires even more powerful chips. Which, again, is good for Nvidia. It’s all very neatly aligned, isn’t it? Almost too neatly aligned. I’m starting to feel suspicious.
He made a comparison to smartphones. Apple releases a new iPhone, the old ones drop in price. It’s the same with these GPUs. The older ones don’t become useless, they just become…affordable. Which is sensible, really. But it also means there’s a market for all levels of AI. Not just the top-end, super-powerful stuff. There’s a second-tier doorway, as he put it. Which is… encouraging. I’ve been focusing on the high-growth potential, but there’s clearly longevity here too.
Breaking Down The Numbers (Because That’s What I Do)
Nvidia’s revenue was $57 billion in the last quarter, up 62%. Data center revenue was $51.2 billion, up 66%. These numbers are… impressive. I’ve seen impressive numbers before, of course. But these are… particularly impressive. They’re sold out of cloud GPUs, apparently. Sold out! It’s like trying to find hand sanitiser in March 2020. They’ve got $500 billion in AI chip bookings through 2026. Half a trillion. It’s… a lot of money. And it’s growing. They’re getting full-year orders for the Rubin chips already. The Rubin chips! I barely know what the Hopper chips do, let alone the Rubin ones.
And it’s not just the big players. Meta’s Llama model is handling about 25% of AI workload volume. 25%! That’s…significant. It means the demand is coming from all directions. It’s not just a few tech giants driving the growth. It’s a whole ecosystem. Which, logically, makes it more sustainable.
Analysts are predicting revenue of $213 billion in the 2026 fiscal year, and $321 billion in 2027. Earnings per share are forecast to be $4.69 this year, and $7.60 in 2027. Roughly a 50% gain. It’s… tempting. Very tempting. I’ve been cautiously optimistic, but these numbers are… compelling. I’m starting to think I might need to re-evaluate my portfolio allocation.
But don’t forget about the older chips. As Huang said, their cost will fall, and they’ll still be in demand. It’s not just about the latest and greatest. It’s about accessibility. It’s about making AI available to everyone. Which is…noble, I suppose. Though I suspect the primary motivation is still profit. Which is perfectly acceptable, of course.
Number of Times I’ve Considered Selling Everything and Becoming a Beekeeper: 1. (It’s a surprisingly appealing option.) But no. I’ll stick with the chips. For now.
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2026-01-18 13:32