Did Nvidia deliver?
And how! The AI boom ensures that the business of chip company Nvidia is growing explosively. The Silicon Valley company doubled its revenue year over year to $13.5 billion last quarter.
Profit jumped from $656 million a year ago to nearly $6.2 billion, Nvidia announced after the US stock market closed on Wednesday. This corresponds to a growth of 843 percent.
Why is Nvidia benefiting more from the AI boom than other chip developers?
Nvidia chips and software are particularly well suited for artificial intelligence applications. This has been driving demand for it – and Nvidia’s share price – for months. Large cloud providers in particular buy chips from Nvidia on a large scale.
It really seems like a new era of computing has begun: #Nvidia reports second quarter data center revenue of $10.32 billion, up 171% year over year. “During the quarter, major cloud service providers announced massive Nvidia H100 (artificial intelligence) infrastructures,” said CEO Jensen Huang. pic.twitter.com/wMiee1tZf8
— Holger Zschaepitz (@Schuldensuehner) August 23, 2023
Which chips are Nvidia growing particularly fast with?
There was a particularly big jump in the last quarter in the data center technology sector. The division’s revenue increased 171 percent year over year to $10.32 billion. Many AI applications run in data centers and the systems are therefore being upgraded with more and more Nvidia chips.
Nvidia’s graphics card gaming business grew 22 percent to $2.49 billion.
How is the stock market reacting?
In after-market trading, Nvidia shares sometimes rose by about nine percent. The company beat analysts’ expectations, both with its past quarter numbers and its third-quarter forecast, running through the end of October. Nvidia expects a further increase in turnover to around USD 16 billion.
Nvidia’s is now one of the most valuable companies in the world.
Nvidia currently ranks higher than Meta and Tesla and is only just behind Amazon.
Why do analysts continue to expect good numbers in the future?
Nvidia’s main competitors Intel and AMD don’t yet have convincing answers to Nvidia’s generative AI chips. AMD’s AI chip for data centers (MI300) is announced for early 2024. However, Nvidia’s next-generation AI chips (GH200) are expected soon after. Nvidia is therefore considered the hippest company in the world, at least on the stock market.
(oli/sda/dpa)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
