NVIDIA CEO Says He Can Switch From TSMC If Needed – Outlines Non AI $1 Trillion Market

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NVIDIA CEO Jensen Huang shared key details for his firm's future yesterday at the Goldman Sachs Communacopia + Technology conference. Huang's comments appeared to be just the catalyst that NVIDIA's shares needed, as the stock gained 10% yesterday and opened higher today as well. During the talk, he commented that even if the broader industry does not adopt artificial intelligence, the demand for NVIDIA's products will still be sustainable simply because of the physics surrounding semiconductor fabrication.

He added that NVIDIA has developed its semiconductor design capabilities so that even if its manufacturing partner TSMC were to face disruption, NVIDIA could continue its GPU supply by switching partners.

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Commenting on AI and whether it is necessary for NVIDIA to grow in the future, Huang started out assuming "the condition where there's no AI at all. Well, in the world where there's no AI at all, general purpose computing has run out of steam still." He believes that despite this, the physical limits of semiconductor design will still limit general purpose computing, since the principles that allowed for "Denard scaling and Mead-Conway's shrinking of transistors, scaling of transistors" are over.

This leads Huang to believe that "we're not gonna see uh, CPUs, general purpose computers that are going to be twice as fast every year," so while all that the industry previously had to do was to " just wait for the CPUs to get faster," now it has to account for computation inflation.

To adjust for computation inflation, "the thing that we have to do, is we have to accelerate everything we can. If you're doing SQL processing,