(MT Newswires) -- Nvidia's annual artificial intelligence conference, dubbed 'AI Woodstock', is a week-long event taking place in person for the first time in four years. Nvidia plans to unveil product updates, with a particular focus on the launch of their new computing architecture, Blackwell, due later this year, aimed at enterprises. Blackwell is said to significantly improve performance over the current H100 architecture, which has already doubled inference performance over the previous generation.

The Blackwell announcement is particularly significant because it is part of Nvidia's strategy to double the speed of innovation of its products. This has implications for the valuation of Nvidia, which is positioning itself not just as a chip manufacturer, but also as a software company, offering an AI platform with software that optimises chip performance.

In terms of revenue, demand for Nvidia's current and future architectures, including the H100 and H200, far outstrips supply, signalling continued strong demand despite the arrival of new products. This dynamic indicates that Nvidia is practising self-disruption to maintain its competitive edge.

Nvidia is also benefiting from significant revenue growth in the data centre sector, with a 409% year-on-year increase in the fourth quarter. This growth indicates a data centre transition from CPU architectures to GPUs, driven by generative AI applications such as ChatGPT, CoPilot, and AI-based drug discovery.

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