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NVIDIA Expands Supercomputing Offerings

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Jun. 30 2019, Updated 10:51 a.m. ET

Update on the supercomputing market

This week, the supercomputing market came into the limelight after the US imposed a ban on five Chinese supercomputing firms. The ban came after the ISC (International Supercomputing Conference) in Germany.

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NVIDIA’s announcements at ISC 2019

One name that stole the show at the ISC 2019 was NVIDIA (NVDA), which manufactures accelerated computing platforms for various AI and data analytics workloads. Necessity is the mother of innovation, and that proved true for NVIDIA. The company is currently working on getting autonomous vehicles on the road, and this has lead to several innovations.

One of NVIDIA’s latest innovations is the DGX SuperPod, a supercomputer for simulation, which it unveiled at the ISC 2019. The company also announced that it will bring its GPU accelerators to ARM-based processors. Both these announcements show NVIDIA’s efforts to boost its data center business, which reported its first YoY revenue decline in more than three years.

NVIDIA’s data center business

NVIDIA’s data center business is currently seeing demand weakness in the current economic environment where data center customers are absorbing their excess capacity. Micron Technology, in its latest earnings, stated that cloud companies’ inventory is normalizing, hinting at a recovery in demand in the second half. But the United States-China trade war has created demand uncertainty.

While the short-term outlook remains uncertain, the data center has strong long-term growth potential, and NVIDIA is investing in the long term. It shared its long-term vision for the data center market and the role of ARM chips and DGX SuperPod in its vision.

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