Nvidia Seen Drawing 'Line in the Sand' with Hyperscalers

Dow Jones02:52

1452 ET - Nvidia appears to be prioritizing support for customers in its AI Clouds, Industrial, & Enterprise bucket, in what UBS analysts see as a pointed look to hyperscalers working on developing their own custom chips. Hyperscalers still comprise around 55% of data-center revenue, but Nvidia intends to shift its mix toward ACIE, a bucket essentially comprising non-hyperscale customers. "We think it is prioritizing support for these customers amid expanding demand (hyperscalers are even running excess workload through the neoclouds to expand capacity)," the analysts write. "This also works well for NVDA since many of the hyperscalers are all working on their own silicon roadmaps so there is an increasingly clear 'line in the sand' being drawn."

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