Market Minute from BlackRock Fundamental Equities

NVIDIA CEO, tech visionary shares AI insights and outlook

Nov 14, 2023

Generative artificial intelligence (AI) is firmly on the scene and set to change the way we live and work. NVIDIA CEO Jensen Huang, an AI pioneer and visionary, is optimistic and energized. He sat down with BlackRock’s Tony Kim and offered wit and wisdom on the fast-moving progress of one of this generation’s greatest innovations.

NVIDIA Fireside Chat Highlights Reel Transcript

TONY KIM

It was a pleasure seeing you in January. And that meeting where I was coming off of 2022 as a tech investor of despair and depression. And then...

JENSEN HUANG

I'm a good listener, Tony,

TONY KIM

It was a seminal meeting, and it gave me hope. And what's transpired since then is nothing more than what I would say, shock and awe of the speed, and adoption of AI.

JENSEN HUANG

You have heard people say that that data is the new oil.

JENSEN HUANG

You're sitting on a treasure trove, a gold mine, of your own of your own data.

TONY KIM

Then the implications for jobs and labor, how do you see that?

JENSEN HUANG

Here's something that we all know. Automation improves productivity. Productivity improves earnings. What happens after improved earnings? Hiring more people. Therefore, AI will create jobs. Of course, they'll change the shape of all of our jobs.

JENSEN HUANG

And so don't worry about AI taking your job. Worry about someone else who uses AI. They're going to take your job.

TONY KIM

[That's] better than the Terminator outcome.

Accelerated computing is broader than just AI, right?

JENSEN HUANG

Without accelerated computing, we are not generating AI today. I mean, it's just not going to happen. I believe that for the very first time in history, the consumption of computing will not be X factors on Moore's Law. 

JENSEN HUANG

The next decade of computing, the amount of consumption of computing, is going to be measured by trillions of times. And so, in the future, you're not talking about applications. You're not talking about AI models. You're talking about AI teams. That's the future. We are going to go into an insane, crazy, fun decade.

Disclosure

BlackRock does and may seek to do business with companies covered in this content. As a result, readers should be aware that the firm may have a conflict of interest that could affect the objectivity of this content.

Investing involves risk, including possible loss of principal. Stock values fluctuate in price so the value of your investment can go down depending on market conditions. Investments in technology industries may be affected by limited product lines, markets or financial resources. Technology industries are rapidly changing and stocks of these companies may be more volatile than the stock market in general.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of October 2023 and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader. Past performance is no guarantee of future results.

Prepared by BlackRock Investments, LLC, member FINRA.

© 2023 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

USRRMH1123U/S-3211883

NVIDIA Fireside Chat Highlights Reel Transcript

TONY KIM

It was a pleasure seeing you in January. And that meeting where I was coming off of 2022 as a tech investor of despair and depression. And then...

JENSEN HUANG

I'm a good listener, Tony,

TONY KIM

It was a seminal meeting, and it gave me hope. And what's transpired since then is nothing more than what I would say, shock and awe of the speed, and adoption of AI.

JENSEN HUANG

You have heard people say that that data is the new oil.

JENSEN HUANG

You're sitting on a treasure trove, a gold mine, of your own of your own data.

TONY KIM

Then the implications for jobs and labor, how do you see that?

JENSEN HUANG

Here's something that we all know. Automation improves productivity. Productivity improves earnings. What happens after improved earnings? Hiring more people. Therefore, AI will create jobs. Of course, they'll change the shape of all of our jobs.

JENSEN HUANG

And so don't worry about AI taking your job. Worry about someone else who uses AI. They're going to take your job.

TONY KIM

[That's] better than the Terminator outcome.

Accelerated computing is broader than just AI, right?

JENSEN HUANG

Without accelerated computing, we are not generating AI today. I mean, it's just not going to happen. I believe that for the very first time in history, the consumption of computing will not be X factors on Moore's Law. 

JENSEN HUANG

The next decade of computing, the amount of consumption of computing, is going to be measured by trillions of times. And so, in the future, you're not talking about applications. You're not talking about AI models. You're talking about AI teams. That's the future. We are going to go into an insane, crazy, fun decade.

Disclosure

BlackRock does and may seek to do business with companies covered in this content. As a result, readers should be aware that the firm may have a conflict of interest that could affect the objectivity of this content.

Investing involves risk, including possible loss of principal. Stock values fluctuate in price so the value of your investment can go down depending on market conditions. Investments in technology industries may be affected by limited product lines, markets or financial resources. Technology industries are rapidly changing and stocks of these companies may be more volatile than the stock market in general.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of October 2023 and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader. Past performance is no guarantee of future results.

Prepared by BlackRock Investments, LLC, member FINRA.

© 2023 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

USRRMH1123U/S-3211883

Generative AI took the stage at BlackRock’s NYC headquarters when Jensen Huang, co-founder and CEO of NVIDIA,1 joined Tony Kim, head of the BlackRock Fundamental Equities global technology team. The two discussed AI’s fast-paced and ongoing evolution from deep learning to representing to human-like reasoning. Key takeaways from their conversation:

  • Thanks to advancements in accelerated computing, AI capabilities have scaled by one million times over the past decade, says Mr. Huang, who projects they will do the same over the next 10 years.
  • Mr. Huang, the longest-tenured CEO in the tech industry,2 notes that companies are “sitting on a treasure trove of their own data” ― the “oil” that fuels AI.
  • “AI will create jobs,” says Mr. Huang in taking on fears over job destruction. “AI is automation of skills. It makes people more productive,” he explains. Rather than losing a job to AI, people should fear losing their job to other people who know and use AI.
  • Mr. Huang believes we are in a “transformative moment for high-tech,” noting that past tech cycles were dominated by hardware and software, whereas AI is profoundly different and centered on a far-reaching “automation of skills.”
  • In Mr. Huang’s estimation, we’re entering an “insane, crazy, fun decade.” He expects the economics of the next layer of AI evolution will be “measured in trillions not hundreds of billions of dollars.”

Interested in more on this topic? See our early 2023 outlook on generative AI.

Tony Kim
Tony Kim
Head of the Global Technology Team, BlackRock Fundamental Equities
Tony Kim, Managing Director, is a member of the Fundamental Equity division of BlackRock's Portfolio Management Group. Mr. Kim is a portfolio manager and head of the technology sector and runs the Global Technology funds.