Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang has highlighted the significance of the company's partnership with Dell Technologies Inc. (NYSE:DELL) in expanding the reach of its artificial intelligence technology.
What Happened: In an interview with Bloomberg Television in Las Vegas, Huang said that the partnership with Dell is expected to enable a broader range of customers to establish their own "AI factories."
"We want to bring this generative AI capability to every company in the world," he said, adding, "It's not about just delivering a box — it's about delivering an entire infrastructure. It's an infrastructure that's insanely complicated."
Nvidia's growth strategy relies on encouraging agencies and businesses to cultivate their own AI capabilities, thereby driving demand for its products. To achieve this, they require the storage, networking, and computing solutions provided by Dell, according to Huang.
Dell ranks among the major suppliers of computing infrastructure to government agencies and businesses, a market that Nvidia does not directly cater to.
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Why It Matters: Nvidia's stock has seen a significant rise this year, up by over 90%. The company is set to report its latest earnings on Wednesday, with analysts estimating a 243% growth in sales last quarter. This rapid growth has positioned Nvidia as the third most valuable tech company, following Microsoft Corporation and Apple Inc.
In the last fiscal year, the company recorded first-quarter revenue totaling $7.19 billion. Nvidia has exceeded analysts' revenue projections for six consecutive quarters and in nine out of the last 10 quarters.
Nvidia currently has a market capitalization of more than $2 trillion. Previously it was reported that in the 1990s, Nvidia faced the threat of collapse. Its initial chip failed, and subsequent attempts met a similar fate. It was during this pivotal moment that Huang approached Shoichiro Irimajiri, a prominent Sega executive, for a $5 million lifeline.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.