Nvidia is currently experiencing the best period in its over thirty-year history. This is due to the boom in artificial intelligence, which has been changing everything in recent months. In this “AI revolution”, the American company plays the first fiddle, or rather the chips it produces, which go to giants such as Meta, Google, Microsoft and OpenAI.
On Wednesday, the American company published its financial results for the last quarter, which the entire market was waiting for. The previous ones, which were published in February, made Nvidia the third highest valued company on the American stock exchange (behind Microsoft and Apple). Also this time, the numbers presented exceeded all analysts’ expectations.
Nvidia Nvidia
In the last quarter, the company’s revenues increased by as much as 262%. (y/y) and amounted to USD 26 billion. The results of the Data Center department, which is responsible for the production of AI chips, turned out to be even more impressive. Here, revenues increased by as much as 427%. to USD 22.6 billion.
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All this translated into profits of $14.88 billion, or $5.98 per share. As for earnings per share after excluding some costs (non-GAAP), it amounted to $6.12.
A new industrial revolution has begun. Enterprises and countries are working with Nvidia to transform trillion-dollar traditional data centers into a new type of data center with faster data processing – AI factories. All this to create a new commodity: artificial intelligence
– wrote Nvidia CEO and founder Jensen Huang in a letter to shareholders.
Artificial intelligence will bring significant productivity gains to almost every industry and help companies become more cost and energy efficient while increasing opportunities to grow revenue.
– added.
Nvidia breaks record after record. The value of the shares exceeded $1,000
The market reacted to Nvidia’s results with enthusiasm, although not as enthusiastic as we saw three months ago. Apparently, investors have already become accustomed to the record growth of the American chipmaker. On Wednesday, Nvidia’s shares rose more than 6 percent in after-hours trading. If this level is maintained on Thursday after the opening of the session, the shares of this company will break the $1,000 barrier for the first time in history.
Nvidia Investing.com
Such a high share valuation prompted the Nvidia management board to announce a 1:10 split. It will enter into force on June 7 this year. The company explains that in this way the values will become more accessible to employees and investors.
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. At the end of March this year. the company presented new AI systems based on the Blackwell architecture, which are seven to thirty times faster than H100, and up to twenty-five times more energy efficient.
Source: Gazeta
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