Nvidia has become a key player in the tech industry due to the growing demand for AI technologies. The company’s revenue surged by 94% compared to the previous year, reaching $35.1 billion. The profit also more than doubled to $19.3 billion. However, investors were hoping for an even better forecast for the current quarter, leading to a 2.5% drop in Nvidia’s stock in after-hours trading.
Nvidia’s chips are essential for training AI applications and are used by major companies like Google and Meta, as well as AI startups such as OpenAI. This strategic position has allowed Nvidia’s business to expand significantly. In the last quarter alone, Nvidia’s revenue from data center technology increased by 112%, reaching $30.8 billion.
The company plans to deliver its new Blackwell chip systems to customers this quarter. However, Nvidia noted that demand for both Blackwell and the current generation Hopper processors would exceed supply for several quarters. CEO Jensen Huang believes that the world is just beginning to transition to AI and machine learning. He envisions a future where programs can perform tasks independently, supported by AI colleagues and robots, leading to a major overhaul of data centers.
Originally known for its graphics cards, Nvidia leveraged its technology for AI applications, gaining a significant advantage during the AI boom triggered by the release of ChatGPT. Competitors like AMD and Intel are trailing, with AMD expecting around $5 billion in revenue from AI chips this year.
Nvidia forecasts a revenue of $37.5 billion for the current quarter, with a potential variation of 2%. This prediction aligns with market expectations, though some analysts had anticipated a more optimistic outlook. The company’s growth has significantly increased Nvidia’s stock value, which is now about three times higher than at the beginning of the year.
Nvidia’s transformation from a graphics card provider to a dominant force in AI highlights the rapid evolution of the tech industry. As AI continues to integrate into various sectors, Nvidia’s role in shaping this future appears increasingly pivotal.