Motley Fool Money: The Future According to Jensen Huang
Release Date: January 8, 2025

Hosted by Dylan Lewis, Ricky Mulvey, and Mary Long

Introduction

In the January 8, 2025 episode of Motley Fool Money, host Mary Long engages in a comprehensive discussion with guest analyst David Meyer, centering on Nvidia CEO Jensen Huang's recent keynote at the Consumer Electronics Show (CES) in Las Vegas. The episode delves into Nvidia's latest technological advancements, strategic focus areas, and the broader implications for the AI and automotive industries.

Jensen Huang’s Keynote Highlights

1. New GeForce GPUs

The episode begins with Mary Long highlighting Nvidia's unveiling of their latest GeForce GPUs, primarily designed for gamers, creators, and developers aiming to produce high-quality visual content. Despite the burgeoning data center business overshadowing gaming revenue, Nvidia remains committed to its gaming segment.

• Mary Long [00:26]: "Yesterday Nvidia CEO Jensen Huang took the stage... used that as an opportunity to unveil a lot of new Nvidia developments..."

• David Meyer [02:34]: "It's the legacy business of the company. I really don't think there is any way that they would stop supporting the gaming industry..."

Nvidia reported data centers generated $18.5 billion in revenue last quarter, while gaming accounted for nearly $3 billion. David Meyer emphasizes that maintaining a strong presence in gaming helps Nvidia sustain its brand prestige and revenue diversity.

2. AI Supercomputer Digits

Nvidia introduced Digits, a $3,000 AI supercomputer designed for researchers, scientists, and students working with AI models. This desktop-sized device boasts four times the memory of a typical laptop and can run AI models comparable to ChatGPT 3.3.5. Huang mentioned the scalability of Digits, allowing users to connect multiple units for more complex tasks.

• Mary Long [03:17]: "Nvidia will also be selling a $3,000 AI supercomputer... it can run its own AI models that rival the power of the last version of ChatGPT 3.3.5..."

David Meyer explains that Digits enhances productivity by enabling local AI model development and testing, reducing reliance on data centers or cloud computing.

3. Self-Driving Technology

A significant portion of Huang's keynote focused on the future of autonomous vehicles. Nvidia envisions self-driving technology evolving into a multi-trillion-dollar robotics industry, with partnerships spanning automotive and logistics sectors.

• Mary Long [05:17]: "Huang during the keynote, predicted that self driving vehicles will become the first multi trillion dollar robotics industry."

Companies like Toyota and Aurora are leveraging Nvidia's Drive OS to develop next-generation autonomous vehicles and shipping trucks. David Meyer discusses the technical advancements, such as the incorporation of LIDAR technology, which enhances the safety and decision-making capabilities of autonomous systems.

• David Meyer [06:04]: "Autonomous driving is a very difficult problem to solve... Aurora incorporates LIDAR technology... to ensure that the truck not only makes the right decisions, but it does so safely."

4. New AI Eras: Agentic AI and Physical AI

Nvidia introduced two groundbreaking AI concepts: Agentic AI and Physical AI.

• Agentic AI: These are AI models that act on instructions, effectively serving as digital workers. Companies can develop AI agents tailored to specific tasks, integrating organizational culture and operational rules.

  • Mary Long [07:28]: "AI agents are the new digital workforce working for and with us."

  • David Meyer [08:28]: "If you could program an agent, an AI agent, to do repetitive tasks alongside the more value added work that you do, that would actually make you more productive..."

• Physical AI: This refers to AI technologies that understand and interact with the physical world. Nvidia's Cosmos platform complements the existing Omniverse by providing generative world foundation models to accelerate the development of autonomous systems like robots and vehicles.

  • Mary Long [09:58]: "Physical AI is technology with an understanding of the rules of the real, the real world."

  • David Meyer [10:40]: "Omniverse brings technologies that Nvidia has developed into software that is already built and looking to be improved upon... Cosmos is more like pre-built worlds that developers can start from..."

Analyst Insights and Reactions

David Meyer’s Takeaways

David Meyer expresses enthusiasm for Nvidia's strategic direction, highlighting the company's foundational role in advancing various technological frontiers.

• David Meyer [13:14]: "I literally loved everything... I am just amazed at the foundational tools that Nvidia is or will be developing... I cannot wait to see how they impact the future."

Meyer underscores the potential of Nvidia's technologies in revolutionizing industries ranging from automotive to robotics, emphasizing the company's pivotal position in shaping future innovations.

Wall Street’s Reaction

Despite Nvidia's groundbreaking announcements, Wall Street's response was mixed. Following the keynote, Nvidia’s market cap briefly soared to nearly $3.7 trillion but experienced a subsequent 5-7% decline in share value the following morning.

• Mary Long [14:08]: "Nvidia hit an all time high market cap of nearly $3.7 trillion post keynote shares fell about 5 to 7% this morning."

David Meyer speculates that investors were seeking more immediate, revenue-generating information rather than future-oriented innovations showcased at CES.

• David Meyer [14:31]: "Wall street... they were looking for more information about what's happening in the near term... CES is about the future and Nvidia did a great job of showcasing what their plans are."

Conclusion

The episode concludes with David Meyer lauding Nvidia's strategic vision and technological advancements, positioning the company at the forefront of the AI revolution and autonomous technology sectors. While Wall Street remains cautious, the long-term prospects for Nvidia appear promising, driven by continuous innovation and strategic partnerships.

Notable Quotes:

• Mary Long [07:28]: "AI agents are the new digital workforce working for and with us."
• David Meyer [08:28]: "If you could program an agent, an AI agent, to do repetitive tasks alongside the more value added work that you do, that would actually make you more productive..."
• Mary Long [10:40]: "Omniverse brings technologies that Nvidia has developed into software that is already built and looking to be improved upon..."
• David Meyer [13:14]: "I am just amazed at the foundational tools that Nvidia is or will be developing..."
• Mary Long [14:08]: "Nvidia hit an all time high market cap of nearly $3.7 trillion post keynote shares fell about 5 to 7% this morning."

This comprehensive overview of the episode encapsulates the key discussions surrounding Nvidia’s future directions, providing valuable insights for investors and technology enthusiasts alike.