(VOR News) – Nvidia, the world’s most valuable company and a catalyst of the artificial intelligence revolution, announced another quarterly report on Wednesday, much to the delight of investors.
The company’s value has risen by $2.2 trillion this year to reach $3.6 trillion, attributed to a neardoubling of chip sales. It reported revenue of $35.08 billion, which fell short of the anticipated $33.15 billion. Year on year, its profits more than doubled. Revenue rose 94% compared to the same quarter of the prior year.
Nvidia predicted 70% revenue growth in the quarter.
Nvidia reported earnings of $0.81 per share, exceeding analysts’ predictions by $0.81. After the announcement, Nvidia’s stock plummeted over 5% in extended trading but immediately recovered to stay at a comparable level; it had previously closed at $145.89 in New York.
In a press statement last week, Nvidia CEO Jensen Huang projected that the computational power facilitating generative AI development will increase by “a millionfold” over the next decade.
Huang asserted during an earnings call that the extensive adoption of Nvidia technology is instigating a platform transition from coding to machine learning, prompting the reconfiguration of traditional data centers to facilitate artificial intelligence development.
A novel industrial revolution poised to create an artificial intelligence sector valued in the multi-trillion dollar range. Generative artificial intelligence is a new industry with artificial intelligence factories manufacturing digital intelligence, not merely a new tool capacity,” he stated.
“AI is revolutionizing every industry, organization, and country,” stated Huang. “Constructing an artificially generated data omniverse… the epoch of robotics has commenced.”
The robust demand for NVIDIA’s Blackwell GPU chips appears to have mitigated concerns regarding a potential decline in the company’s demand, as major digital corporations invest billions in data centers and artificial intelligence processing.
From an August low, Nvidia’s valuation has climbed 45%.
Subsequent to the election, the semiconductor stock has attained unprecedented peaks, increasing almost 200% this year and exceeding 1,100% over the past two years.
Nevertheless, as they struggle to compete with Nvidia’s supremacy in AI, other chip manufacturers have become a net detriment to the industry.
Wedbush analyst Dan Ives anticipated another “drop-the-mic performance” from Nvidia before the results were announced, asserting that the business was “the sole contender with over $1 trillion in AI capital expenditure forthcoming over the next few years, with Nvidia’s GPUs representing the new oil and gold in this domain.”
Recently, top global IT companies spent billions on AI.
Nvidia is perceived by many as a barometer for the technology sector and the desire for artificial intelligence, which has driven Wall Street to numerous all-time highs this year.
Markets are anxious due to the escalation of the Russia-Ukraine conflict, the likelihood that the Federal Reserve will not reduce US interest rates, and the potential for global tariff increases under Donald Trump’s forthcoming administration.
Ives’ assertion that Nvidia’s forthcoming Blackwell processor might propel the company’s revenues and market capitalization to historic levels was corroborated by multiple analysts. Indicators of “extraordinary demand” for the new chip, including forecasts of unprecedented sales and accounts of depleted inventories for the forthcoming year, are significant indicators of Nvidia’s continued exceptional growth, as stated by Saxo chief investment analyst Charu Chanana.
Nevertheless, due to its inflated valuation, Chanana warned that “any indications of production delays or insufficient demand could exert pressure on the stock.”
This week, a source reported that the chipmaker is seeing server overheating issues with its latest graphics processors, the B200 and GB200 NVL72, named after renowned American statistician and mathematician David Harold Blackwell.
Nvidia’s spokesperson remarked that “the engineering iterations are standard and anticipated,” without explicitly dismissing the report.
“Minor details can disrupt significant investments consistently,” stated computer magnate Michael Dell.
SOURCE: TG
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