The chatbot ChatGPT has started a new race in artificial intelligence (AI) – and one winner of the competition has already been determined: it is the chip company Nvidia, on whose technology many AI applications run.
The American chip company benefits enormously from the rise of artificial intelligence. With its sales forecast, the graphics card specialist beat the average analysts’ expectations by about 50 percent.
The stock rose nearly a quarter in after-hours trading. Nvidia chips and software are well suited for artificial intelligence applications.
Nvidia forecast revenue of about $11 billion for the quarter ending July, with a range of two percent more or less. Analysts had expected an average of about $7.2 billion.
In a conference call with journalists, company chief Jensen Huang spoke of “incredible orders” for data center upgrades. They would be more focused on AI applications.
Last quarter, sales of Nvidia’s data center technology hit an all-time high, up 14 percent to $4.28 billion. Nvidia technologies, originally developed for graphics cards, have long proven themselves for the computing behind artificial intelligence applications.
In recent months, the chatbot ChatGPT and software that can generate images based on text descriptions have sparked a new AI hype. Many companies want to keep up with such applications, increasing the need for specialized technology in data centers.
Analysts are now wondering whether the surprisingly high sales forecast for the current quarter is an outlier or an indication of Nvidia’s consistently large business. Huang stressed that the use of artificial intelligence is just beginning.
Overall, Nvidia’s revenue fell 13 percent to $7.19 billion (€6.7 billion) in the first quarter ended April. The main reason for this was a slump in the trade of personal computer graphics cards. It shrank by 38 percent to $2.24 billion. The PC market is currently weak after the rapid sales at the start of the corona pandemic.
On balance, Nvidia ended the quarter with a profit of $2.04 billion, compared to $1.62 billion a year earlier.
The iPhone modems for connection to the lightning-fast 5G mobile generation are currently being made by the American chip company Qualcomm. However, Apple has had ambitions for years to develop 5G technology in-house.
Qualcomm also assumes that it will eventually lose the modem business with Apple. Apple had already bought Intel’s wireless modem division in 2019.
(dsc/sda/dpa)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
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