Nvidia the electronics and computer chip leader, has announced a surge in sales according to a new earnings report.
The report topped expectations and allowed investors to relax after a harsh forecast was predicted.
Nvidia records record profits
The electronics giant didn’t just record a slight profit increase, it recorded a stunning 262% increase, a figure that is sure to excite tech enthusiasts. This, coupled with the company’s brilliant performance, sent Nvidia’s share price to a stellar $1,017 per share, an all-time high.
Graphics processing units (GPUs) have been in high demand since late last year and boomed in early 2024. These are integral to developing artificial intelligence (AI) applications and are the engine room for processing a large amount of information and data.
President Biden has also backed Nvidia as a winner in the CHIPS Act, which will see demand for United States-based chip manufacturers soar over the next few years.
“The next industrial revolution has begun. Companies and countries are partnering with Nvidia to shift the trillion-dollar installed base of data centers to accelerate computing and build a new type of data center, AI factories, to produce a new commodity, artificial intelligence,” said CEO of Nvidia Jensen Huang.
Nvidia first created its advanced processors to help gamers play the top-end titles on the highest specs. They inadvertently created the ideal hotbed for AI to thrive and as a consequence, these gaming processors would become the foundry for the leading AI applications that have become an investment staple throughout the year.
Multiple big businesses are wading into the AI game, with companies like Tesla taking a particular interest in its application in vehicles and systems. So much so that Elon Musk said the “talent war for AI is the craziest talent war I’ve ever seen.”
AI is a rapidly advancing field, so Nvidia is reaping the benefits of this early AI boom. “We’re racing every day,” said Huang, “Customers are putting a lot of pressure on us to deliver the systems and stand them up as quickly as possible.”
Image: Ideogram.
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