Nvidia CEO Jensen Huang told CNBC on Thursday that he was confident in the company’s growth story, even if the potential blockchain build of British Army chip designer doesn’t happen.
“Nvidia is going to be really big no matter what,” Huang said on “Mad Money,” in response to a question from Jim Cramer, the show ‘s guest. Cramer asked the agency how investors should think about Nvidia in the long run while their $ 40 billion deal to buy Softbank-owned arm waits.
Several companies across the technical landscape, including California-based chipmaker Qualcomm and Microsoft, have told the Federal Trade Commission that they were concerned that Nvidia-Arm’s contract could hurt competition. The FTC, the U.S. trust regulator, has opened an “in-depth review” of the build, Bloomberg reported earlier this month.
Nvidia, which is famous for its gaming graphics chips, announced the deal in September. Shortly after its public release, Cramer told “Mad Money” viewers that if “Nvidia can close down Army Holdings, the stock will be gonna be volatile even after its elegant multi-view run.”
Nvidia’s stock has grown 103% in the last 12 months, compared to a gain of 22.4% for the S&P 500. Over the past five years, the chipmaker’s shares are up nearly 1,600 %.
Huang said Thursday that Nvidia’s slots are still at the heart of a number of disruptive technologies, keeping its worldly tails engaged. Earlier in the day, the company reported quarterly sales of $ 5 billion, which represented a year-over-year growth of 61%. Both revenue and earnings exceeded Wall Street expectations.
“The growth opportunity ahead of us for artificial intelligence, autonomous vehicles, manufacturing, industrial robots, 5G edge, these applications are going to make us a great company,” said Huang, founder of Nvidia-based in California in 1993. ” I think our growth path is very interesting. … We expect it to be a year of great growth for a data center, and that ‘s all independent of the Army, “Huang said.
At the same time, Huang also tried to defend Nvidia’s desire to buy Arm, which is famous for designing the chip architecture used in most of the world’s mobile phones. .
“We will be able to bring so much engineering scale and so much engineering into the Army to accelerate their roadmap, which the ecosystem is going to love,” he said. , saying: “We’re going to make this deal. I am very confident in that. ”
Last year, Nvidia completed the $ 7 billion acquisition of chip maker Mellanox Technologies. It took more than 13 months to complete as Chinese regulators reviewed the deal.
Shares of Nvidia closed more than 8% on Thursday, which was a difficult session for many tech companies as investors eroded rising bond yields.
Disclosure: Cramer Charitable Trust holds shares in Nvidia.