AI chipmaker Nvidia, the world’s most valuable company and the driving force behind the artificial intelligence boom, reported another set of quarterly results on Wednesday to the delight of investors.
The company, whose value has soared by $2.2 trillion this year to $3.6 trillion as chip sales nearly doubled, said it had revenue of $35.08 billion, versus expectations of $33.15 billion. million dollars. Its profits more than doubled year after year. Revenue increased 94% compared to the same quarter last year. The company projected that revenue would increase 70% in the next quarter.
Analysts anticipated that Nvidia would report earnings of $0.75 per share; the company reported $0.81. Nvidia shares fell about 5% in extended trading following the announcement, but soon recovered the losses and remained at a similar price; They previously closed at $145.89 in New York.
Nvidia boss Jensen Huang, who last week said he expected the computing power driving advances in generative AI to increase “a million-fold” over the next decade, said in a press release.
In an earnings call, Huang said global adoption of Nvidia technology was creating a platform shift from coding to machine learning, with traditional data centers rebuilt for machine learning to produce AI.
“Generative AI is not just a new software capability, but a new industry with AI factories manufacturing digital intelligence: a new industrial revolution that can create a multi-trillion-dollar AI industry,” he said.
“AI is transforming every industry, company and country,” Huang added. “Creating an omniverse of synthetically generated data… the era of robotics is coming.”
Rising demand for Nvidia’s Blackwell GPU chips appears to have eased anxiety that the company could be hit by a pullback in demand from tech giants that invest billions in data centers and AI processing.
Nvidia’s stock has rebounded after a dip in the summer, rising 45% from its August low. The chip stock (which is up nearly 200% this year and more than 1,100% over the past two years) hit record highs after the election.
But many of Nvidia’s chipmaking peers have become a net drag on the industry as they struggle to compete with its AI dominance.
Before the results were announced, Wedbush analyst Dan Ives said he expected another “spectacular performance” from Nvidia, saying it was “the only game in town with more than $1 billion of AI capitalization investment on the way.” for the next few years.” with Nvidia GPUs the new oil and gold of this world.”
The world’s largest tech companies have increased the amount they invest in AI by billions in recent quarters, positioning Nvidia as a major beneficiary.
Nvidia, which many see as a bellwether of the technology sector and the demand for artificial intelligence that has helped propel Wall Street to multiple all-time highs this year.
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But an escalation in the war between Russia and Ukraine, the threat of global tariff increases from the incoming Donald Trump administration and the likelihood that the Federal Reserve will not cut US interest rates have also put markets on edge.
Other analysts agreed with Ives’ assessment that demand for Nvidia’s new Blackwell chip could drive Nvidia’s sales and market capitalization to new heights. Saxo chief investment strategist Charu Chanana wrote that signs of “extraordinary demand” for the new chip, including record sales forecasts and reports of depleted inventories for next year, are strong indicators of Nvidia’s continued high performance.
But Chanana warned that “any sign of production delays or insufficient demand could put pressure on the stock given its lofty valuation.”
Earlier this week, a report said the chipmaker is having overheating problems with servers for its newest graphics chip. B200 and GB200 NVL72, both are named after David Harold Blackwell, a prominent American mathematician and statistician.
An Nvidia spokesperson did not reject the report outright, but said that “engineering iterations are normal and expected.”
Computer billionaire Michael Dell aware that “the minutiae can always take you out of tremendous investments.”