Saudi Arabia and UAE race to buy Nvidia chips to power AI ambitions

ft.com

> According to multiple sources close to Nvidia and its manufacturer, Taiwan Semiconductor Manufacturing Company, the chipmaker will ship about 550,000 of its latest H100 chips globally in 2023, primarily to US tech companies. Nvidia declined to comment.

550,000 H100 chips in a year! OpenAI used a thousand A100s - this does justify Nvidia's share price rise somewhat.

Does it ? That's 22 billion $ of sales - at 30% margin, that's around 7 B $ of profit.

The company is valued at >1T$ - more than 142 years of profit on those H100 chip sales ! (they don't just sell H100, but still)

Their data entire data centre revenue in 2022 was $11B ($15B for graphics) so achieving $22B of sales on one product seems fairly good growth.

Sure. But they would need to double it every year for the next 3 years too to get to a somewhat reasonable valuation for a tech company (reasonable by historical standards).

And it would need to happen with maintaining insane margins and without competition showing up.

https://archive.ph/G4cas

Reply on news.ycombinator.com