Tech powerhouse Nvidia announces record-breaking sales, more than doubling, driven by the soaring demand for its artificial intelligence (AI) chips.
The company reports that its revenue surged to surpass $13.5 billion for the three months ending in June.
Furthermore, Nvidia anticipates a substantial uptick in sales during the current quarter and has plans to repurchase $25 billion of its own stock.
In extended trading on the New York Stock Exchange, the company's shares surged by over 6.5%, contributing to their significant gains throughout this year.
Nvidia has also revealed its projection of approximately $16 billion in revenue for the three months ending in September.
This forecast far exceeds Wall Street's expectations and would signify a remarkable increase of around 170% compared to the same period last year.
Nvidia's CEO, Jensen Huang, remarked, "A new computing era has begun," underscoring the transition of companies globally towards accelerated computing and generative AI from conventional general-purpose computing.
The impressive performance was primarily driven by Nvidia's data center business, which incorporates AI chips.
The revenue from this segment reached more than $10.3 billion, marking a surge of over 170% compared to the previous year, as cloud computing service providers and prominent consumer internet companies adopted their next-generation processors.
In the current year, Nvidia's market capitalization has surged beyond $1 trillion, with its shares experiencing a more than threefold increase in value.
This achievement positioned it as the fifth publicly traded company in the United States to become a part of the "Trillion Dollar Club," alongside Apple, Microsoft, Alphabet, and Amazon.
Sarah Kunst, Managing Director of Cleo Capital, an investor in startups, expressed her intrigue with the widespread enthusiasm surrounding Nvidia. Speaking on the BBC's Today program, she mentioned, "They've been producing chips for a considerable time, and it's only been over the last couple of years that the market has truly recognized this."
Nvidia initially gained recognition for manufacturing the kind of computer chips used to process graphics, particularly for video games. However, their hardware has now become the foundation for the majority of AI applications. A report indicated that Nvidia has captured 95% of the market for machine learning.
Even ChatGPT, which generates human-like responses to user queries within seconds, was trained using 10,000 of Nvidia's graphics processing units working together in a supercomputer owned by Microsoft.
AI products are anticipated to bring about substantial transformations in how we utilize computers and the roles they fulfill in our lives.
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