Nvidia Ramps up AI Tech for Games, Robots and Autos

Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)
Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)
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Nvidia Ramps up AI Tech for Games, Robots and Autos

Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)
Nvidia CEO Jensen Huang holds a new Nvidia GeForce RTX 5090 graphics card as he gives a keynote address at CES 2025, an annual consumer electronics trade show, in Las Vegas, Nevada, US, January 6, 2025. (Reuters)

Nvidia chief executive Jensen Huang made a rock star appearance at a packed arena late Monday, touting AI chips and software for robots, cars, video games and more.

After years of being on the sidelines at the annual Consumer Electronics Show (CES) in Las Vegas, talk of computer chips was a hot ticket as people queued for hours to fill an arena to hear Huang talk AI.

"When you see application after application that is AI driven, at the core of it is that machine learning has changed how computing will be done," Jensen said during a one-man presentation on stage.

"There are so many things you can't do without AI."

Jensen's keynote came on the eve of the opening of the CES show floor, and on a day that Nvidia shares closed at a new record, giving the Silicon Valley company a market valuation of more than $3.6 trillion.

Nvidia's graphics unit processors (GPUs) for powering AI in datacenters have been snapped up by Google, Microsoft, Meta, OpenAI and others racing to be leaders in the technology.

During a lengthy presentation in Michelob Ultra Arena at Mandalay Bay resort, Huang introduced a GPU for ramping up AI capabilities in personal computers where Nvidia won the loyalty of gamers in the company's early days.

Nvidia touted the new GeForce RTX 50 series for desktop and laptop computers based on Blackwell chip architecture as its most advanced consumer GPUs.

"Blackwell, the engine of AI, has arrived for PC gamers, developers and creatives," Huang said.

PCs enhanced with RTX chips for AI capabilities will be available from an array of manufacturers including Acer, Dell, HP, Lenovo, Razer and Samsung, according to Nvidia.

An AI PC displayed during the presentation was priced at $1,299, built with the $549 RTX chip at the starting point of the new GPU line-up.

Along with rapid rendering of rich gameplay action, Nvidia AI technology will enable the creation of characters that perceive, plan and act like human players, according to Nvidia.

Such autonomous characters are being integrated into games including "PUBG: Battlegrounds", according to Nvidia.

Huang also introduced a family foundation models open to the world for advancing "physical AI" that enables robots to understand and engage in real-world tasks.

Nvidia expanded partnerships and technology for autonomous capabilities in cars as well, with Toyota joining its roster of partners.



Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.