Nvidia AI, the world’s leading chip maker, has marked a significant milestone in the realm of artificial intelligence (AI) with its recent record-breaking sales. The company’s chief executive officer, Jensen Huang, expressed that AI has reached a “tipping point” as Nvidia reported a remarkable surge in revenues.
In the three months leading up to January 28th, Nvidia witnessed a staggering 265% increase in revenues, amounting to an impressive $22 billion. This growth trend extended over the entire year, with the company’s turnover more than doubling to a substantial $60.9 billion.
Huang attributed this extraordinary growth to the success of “accelerated computing and generative AI.” He emphasized that the demand for these technologies is soaring worldwide, transcending boundaries between companies, industries, and nations.
The forecast for Nvidia’s future looks equally promising, with the company predicting a remarkable 233% surge in quarterly revenues for the current quarter. This projection has surpassed analysts’ expectations and underscores the momentum of Nvidia’s growth trajectory.
Bob O’Donnell of Technalysis Research hailed Nvidia’s recent performance as exceptional, stating that they “knocked it out of the park” during the last quarter. He pointed out that AI is no longer confined to specialized tech firms, noting a significant increase in mainstream usage.
A key driver of Nvidia’s success lies in its data center business, which has experienced rapid growth. In the latest quarter, the data center segment accounted for the majority of Nvidia’s revenues, showing a more than five-fold increase over the past year.
The financial results also revealed a substantial rise in gross profit, reaching $16.8 billion for the final quarter of the fiscal year—an increase of 338%. Annual gross profit also saw a significant uptick, rising by 188% to $44.3 billion.
However, Nvidia acknowledged several challenges on the horizon, including constraints within its supply chains. Additionally, the company faces tightened trade restrictions between the US and China, the world’s second-largest economy.
Senior analyst Ipek Ozkardeskaya from Swissquote lauded Nvidia’s “unusually amazing” results but cautioned about potential challenges ahead. She highlighted the possibility of revenue growth stabilizing and the need for Nvidia to navigate competition and regulatory hurdles.
The rise of Nvidia AI prominence in the public sphere has been particularly notable since the launch of ChatGPT in 2022, developed by Microsoft-backed OpenAI. Systems like ChatGPT leverage vast amounts of data to generate human-like responses to user queries, promising to revolutionize online information searches.
Nvidia AI stellar performance has also translated into remarkable gains in its stock market value, which has surged by an impressive 225% over the past year. This has solidified Nvidia’s position as one of the most valuable companies in the US, with its share price experiencing a significant jump of more than 9% in extended New York trading.
Looking ahead, Nvidia appears poised to continue its trajectory of growth and innovation, spearheading advancements in AI technology and reshaping the landscape of computing and data analytics on a global scale. The company’s robust financial results and strategic vision position it as a leader in the ever-evolving tech industry, poised to capitalize on the burgeoning demand for AI-driven solutions.
Source Nvidia: Boss says AI at ‘tipping point’ as revenues soar. Published in BBC by Mariko Oi