Nvidia Sees Sales More Than Double; Thanks To AI

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Technology giant Nvidia says its sales have hit a record high after more than doubling; as demand for its artificial intelligence (AI) chips soars. The company says revenue jumped to above $13.5bn (£10.6bn) for the three months to the end of June.

Nvidia also expects sales to soar further in the current quarter and plans to buy back $25bn of its stock. The firm’s shares rose by more than 6.5% in extended trading in New York; adding to their huge gains this year. Nvidia also said it expects revenue of around $16bn for the three months to the end of September. That is much higher than Wall Street expectations and would equate to a rise of around 170%, compared to the same time last year.

“A new computing era has begun,” Nvidia’s chief executive, Jensen Huang, said in a statement. “Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” he added. The strong performance was driven by Nvidia’s data centre business, which includes AI chips.

Revenue for that unit came in at $10.3bn more, a rise of more than 170% from year ago; as cloud computing service providers and large consumer internet companies snapped up its next-generation processors. This year, Nvidia’s stock market value has jumped to more than $1 trillion as its shares more than tripled in value. That made it the fifth publicly traded US company to join the so-called “Trillion dollar club”, along with Apple, Microsoft, Alphabeta and Amazon.

Nvidia was originally known for making the type of computer chips that process graphics; particularly for computer games. Now its hardware underpins most AI applications, with one report finding that it had cornered 95% of the market for machine learning.

ChatGPT – which generates human-like responses to user queries within seconds – was trained using 10,000 of Nvidia’s graphics processing units clustered together in a supercomputer belonging to Microsoft. AI products are expected to dramatically change how we use computers and the role they play in our lives.

 

 

 

 

 

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