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The Nvidia chip group is benefiting greatly from the explosion in artificial intelligence. With its sales forecast, the graphics card specialist exceeded analysts’ average expectations by around 50 percent. The stock rose nearly a quarter in post-trading. Nvidia chips and software are well suited for applications based on AI.
Nvidia forecasts sales of approximately $11 billion for the quarter ending in July, with a gap of roughly two percent. Analysts had expected an average of around $7.2 billion.
Company boss Jensen Huang spoke about “incredible orders” to upgrade data centers in a conference call with reporters. They would be more geared towards AI applications.
Last quarter, Nvidia’s data center technology sales rose 14 percent to a record $4.28 billion. Originally developed for graphics cards, Nvidia technologies have long proven themselves for computing work behind applications involving artificial intelligence.
In recent months, the ChatGPT chatbot and software that can generate images based on text descriptions has sparked a new wave of artificial intelligence. Many companies want to keep up with such applications, which increases the need for proprietary technology in their data centers.
Analysts are now wondering if the surprisingly high sales forecast for the current quarter is an outlier or an indication of Nvidia’s consistently big business. Huang emphasized that the use of artificial intelligence has only just begun.
Overall, Nvidia sales fell 13 percent to $7.19 billion (€6.7 billion) in the first quarter ended April. The main reason for this was the decline in the business of video cards for personal computers. This decreased by 38 percent to $2.24 billion. The PC market is currently weak after rapid sales at the start of the corona pandemic.
Overall, Nvidia closed the quarter with $2.04 billion, up from $1.62 billion a year ago.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
