AI demand is growing parabolically, the potential market size for CPUs is further increasing, and edge computing was reported separately for the first time. Key takeaways from Nvidia's earnings call: 1. Jensen Huang stated directly: Demand is growing parabolically. The reason is simple: intelligent agent AI has arrived. Mainstream AI has transitioned from one-time reasoning to logical reasoning, and now it has entered the "intelligent agent" stage. AI is no longer optional, but a necessity. Tokens are now profitable. In the AI era, computing power equals revenue and profit. This also coincides with yesterday's... 2. The biggest incremental information and potential of the call came from Nvidia's significant investment in its CPU business. Huang announced: "The Vera CPU opens up a completely new $200 billion market for Nvidia, a market we've never been in before." At AMD's last earnings call, Lisa Su increased the TAM (Total Potential Market Size) for CPUs by $120 billion; today, Huang has once again pushed it to $200 billion. Faced with the characteristics of "AI agents" requiring extensive use of tools, browsers, and orchestration, GPUs alone are no longer sufficient; the market demands a completely new CPU architecture. Vera will not only be sold as a companion device to Rubin GPUs but also as a standalone CPU, storage node, and security node. Huang revealed that nearly $20 billion in total revenue from standalone CPUs is expected this year, marking Nvidia's readiness to become a leading global CPU supplier. (This coincides with Chen Liwu's speech yesterday | _2024111120231_| 3. Edge computing officially enters the mainstream.) Nvidia changed its reporting framework in this earnings report, dividing its business into two major platforms: "Data Center" and "Edge Computing." The Data Center business (Q1 revenue of $75 billion) is further subdivided into "Hyperscale Cloud Vendors (Hyperscale)" and "ACIE (AI Cloud, Industrial, and Enterprise)": 1) Hyperscale ($38 billion): Accounts for approximately 50% of the data center market share, a 12% increase quarter-over-quarter. 2) ACIE ($37 billion): A significant 31% increase quarter-over-quarter, with AI cloud revenue more than doubling year-over-year and sovereign AI revenue growing by over 80% year-over-year. Edge computing business reached $6.4 billion ($6.4 billion), a 10% increase quarter-over-quarter and a 29% increase year-over-year. This is a newly separated category. Edge computing encompasses end devices for agent AI and physical AI, including PCs, game consoles, workstations, AI-RAN base stations, robots, and automobiles. 4. Mass production and shipment of Vera Rubin began in Q3. By integrating seven dedicated chips, Vera Rubin's inference throughput can reach up to 35 times that of Blackwell. Vera Rubin will be more successful than Grace Blackwell in this respect. Every leading-edge model company will fully transition to Vera Rubin from the outset. twitter.com/qinbafrank/status/...