NVIDIA Corporation (NVDA.US) AI "New Ace" is here! Vera Rubin has delivered to giants like OpenAI, the next round of computing power competition is now open

NVIDIA Corporation (NVDA.US) has announced that its computing systems based on the latest Vera Rubin architecture have been delivered to several large artificial intelligence (AI) companies and will soon be put into operation. The company emphasizes that the new generation of products is progressing as planned and is expected to further solidify its leading position in the AI chip market. Ian Buck, Vice President and General Manager of NVIDIA Corporation, stated at a media briefing held at the company's headquarters: "We have entered the mass production stage, and all major customers are deploying related systems." The progress of the Vera Rubin product launch has been closely watched by investors and analysts, with previous concerns in the market about possible delays or production disruptions. Despite NVIDIA Corporation CEO Jensen Huang having previously dismissed such concerns, the market remains cautious about whether NVIDIA Corporation can maintain its technological advantage as competitors catch up. Data shows that the chip industry benchmark index has risen approximately 66% this year, but NVIDIA Corporation's stock price has only increased by about 9%. In contrast, the stock prices of Intel Corporation (INTC.US), Arm Holdings (ARM.US), and AMD (AMD.US) have all risen by more than double. Currently, NVIDIA Corporation remains the dominant supplier in the AI accelerator market. AI accelerators are mainly used in data centers to run AI software. However, AMD and Broadcom Inc. (AVGO.US) are actively vying for more market share, and large data center customers like Amazon.com, Inc. (AMZN.US) are developing their own chips to reduce dependence on NVIDIA Corporation products. In this context, NVIDIA Corporation faces pressure to prove that its new products can be delivered on time and outperform competitors. The company has held multiple briefings at its headquarters in Santa Clara, California, emphasizing that the new generation of devices not only has higher performance but also significantly reduces deployment complexity. NVIDIA Corporation stated that the developer of ChatGPT, OpenAI, plans to "scale" the adoption of the Vera Rubin system in the third quarter. Companies like CoreWeave (CRWV.US), Alphabet (GOOGL.US, GOOG.US), Microsoft Corporation (MSFT.US) Azure, Meta Platforms (META.US), Dell Technologies, Inc. (DELL.US), and others have already started using the related systems. Although investors have been cautious about NVIDIA Corporation stock performance this year, the market expects its revenue growth to accelerate further. Analysts predict that NVIDIA Corporation's revenue for this fiscal year will increase by 82% year-on-year, reaching $39.34 billion, higher than the previous estimated growth of about 65%; total revenue for the next fiscal year is expected to exceed $50 billion. NVIDIA Corporation is expected to contribute about one-third of global chip industry sales while maintaining high profitability levels. Market expectations are that the company's gross margin for this fiscal year will reach around 75%. NVIDIA Corporation executives stated that the company is introducing a series of new technologies to improve hardware design, manufacturing processes, and cooling systems to enhance product performance and deployment efficiency. In previous generations of products, computing trays that accommodate AI accelerators, central processing units, and network components typically required manual assembly, including connecting numerous cables. This process was time-consuming, especially when factory employees were just becoming familiar with the new design, leading to relatively high failure rates. The new generation of systems has largely eliminated internal cables, mainly connecting components through circuit boards or specially designed connection devices. NVIDIA Corporation stated that tasks that previously took hours to complete manually can now be done in minutes by Siasun Robot & Automation, significantly reducing failure rates. This improvement is partly due to major components fully adopting liquid cooling technology. Liquid cooling systems reduce the need for fans and airflow space, allowing for higher-density internal component placement in the cabinet. NVIDIA Corporation stated that the processing capacity of the new AI accelerator system cabinet, NVL72, will be 10 times that of the previous generation. Tokens, the basic unit of measurement for AI computing tasks, have had their performance data measured by data center operator CoreWeave. Unusually, NVIDIA Corporation directly compared the performance of the new product with competitors. The company stated that when running Python programming language code, the speed of the new Vera processor can reach up to 1.8 times that of the AMD Turin processor. OpenAI and Anthropic are early customers of this product. Furthermore, NVIDIA Corporation has established multiple test sites near its Silicon Valley headquarters for quick development and validation of the hardware, software, and ancillary technologies needed for AI data centers. Customers can test software and services on new hardware in these facilities before official delivery. At a small test data center in Sunnyvale, California, NVIDIA Corporation engineers demonstrated a set of Vera Rubin servers being tested by OpenAI. This serves as a clear signal that the new generation of AI computing devices is ready to take on the most critical artificial intelligence workloads globally.