Chip manufacturing giant, Nvidia, has once again shattered records in the last quarter. Being the current global front runner in the production of chips for artificial intelligence (AI) applications, the company saw its sales skyrocket by 265 percent in comparison to the same period last year.
CEO Jensen Huang stated that Nvidia is leveraging the increasing global demand for faster computing and AI applications. He explained, “Demand is burgeoning across various types of companies, sectors, and countries.” The data center branch of the company has seen a significant influx of revenue.
The total quarterly revenues reached an impressive $22.1 billion, marking a 22 percent increase from the previous three months, a period which also saw record profit. In addition, Nvidia also recorded a quarterly profit of $12.3 billion, a third more than the earlier quarter.
The anticipation for Nvidia’s quarterly report in the financial markets was high, and it appears that the company did not disappoint. Investors seemed impressed as Nvidia shares experienced a marked increase in the after-hours trading on Wall Street on Wednesday.
Nvidia anticipates further revenue growth in the current quarter. While the estimated revenues of $24 billion suggest a slightly slower growth rate compared to the previous three months, the forecast still surpasses analysts’ expectations.
Chips for AI
Nvidia, which was co-founded by Huang in 1993, initially started as a supplier of graphics cards primarily for computer games. However, the company’s growth has been exponential in recent times due to the discovery that Nvidia’s chips are perfectly suited for AI applications that require substantial computing power.
Currently, Nvidia is one of the most valuable stock companies in the world. Major corporations like Amazon, Meta (formerly Facebook), Microsoft, and Google are among the company’s biggest clients. These companies are responsible for nearly 40 percent of Nvidia’s turnover due to their heavy investments in AI.
