The entire world of business, finance and technology was waiting for Nvidia’s financial results. The company is currently experiencing the best period in its 30-year history. And all this is thanks to the AI revolution, in which chips produced by Nvidia play the leading role. Suffice it to say that the American manufacturer has about 80 percent of the market share in these devices, and for a few days last week it became the third most expensive company listed on the American stock exchange, overtaking Alphabet and Amazon.
The presented results show that the market is still in love with AI and sees great potential in the further development of this technology. Nvidia’s revenue in the last quarter increased by 265 percent to $22.1 billion, and its profit increased by a paltry 769 percent to $12.3 billion.
Nvidia quarterly report photo: DM
These numbers exceeded all analyst expectations. As a result, Nvidia’s shares rose more than 9 percent in after-hours trading to $735.90, and the company’s market capitalization rose above $1.8 trillion. This put Nvidia back on the podium of the most valued American companies.
Nvidia shares photo: Investing.com
Nvidia exceeds all expectations again. Record revenues and profit
As could be expected, the Data Centers department, which is responsible for, among others, for the production of artificial intelligence chips (H100 and A100). Data center revenues increased a whopping 409 percent to $18.4 billion.
Accelerated data processing and generative artificial intelligence have reached a tipping point. Demand is growing around the world, in all companies, industries and countries
– said Jensen Huang, CEO of Nvidia, on Wednesday. – Industries such as automotive, financial services and health care currently invest at the level of many billions of dollars – he added.
Once again, Nvidia has left no doubt that the AI boom is more than just a stock market narrative.
– Thomas Monteiro emphasized,
To say that Nvidia is a monopoly in the AI chip industry today is an understatement. The company has about 80 percent of the market share in these devices, and there are queues of people waiting for its most popular H100 and A100 systems.
The situation is interesting because Nvidia’s growth is now ensured by its largest rivals, who use chips produced by the Santa Clara company to create generative AI tools, such as ChatGPT (OpenAI), Gemini (Google) or Copilot (Microsoft). Meta, the owner of Facebook, intends to buy as many as 350,000 A100 chips this year alone.
Experts point out that Nvidia is winning the war for the artificial intelligence market today, because its largest competitor AMD focuses almost exclusively on the consumer market. And although companies such as Google and Microsoft are thinking about producing their own systems to become independent from Nvidia, currently the Santa Clara company is the only one that has the know-how and technology to produce AI chips on a mass scale.
Source: Gazeta
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