Nvidia is emerging as one of the biggest winners in the AI boom. The Santa Clara (California)-based company manufactures computer processors with significant computing power, just the ones that are in demand due to the impetus of new technology. The company reported revenue forecasts well above analysts’ expectations and the stock market rose about 25% in outside-of-hours trading.
technology company It was announced on Wednesday at the close of the market Which generated income of $7,190 million (about 6,700 million euros) in the first quarter of the year (February to April), 13% less than last year (due to a downturn in the video game business) and 19% more than in the quarter the previous. Interest for those first three months was $2,043 million, up 26% over last year and 44% more than in the prior quarter. The company usually makes both comparisons, given the strong growth rate it has had in its history.
“The computing industry is going through two simultaneous phases: accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia. through a statement. “The global trillion-dollar data center infrastructure will shift from general purpose to accelerated computing, as companies rush to apply generative AI to every product, service, and business process,” he added.
High-power processors designed and manufactured by Nvidia have been added to various thriving businesses. In its 30-year history, Nvidia has been a leader in graphics processing for PCs and video game consoles. To get ever better images, it has been ramping up the power of its processors exponentially, with capabilities for robotics, cloud computing, aerospace, weapons manufacturing, autonomous driving, self-driving, image recognition and, of course, artificial intelligence.
Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle are among the companies vying for leadership in artificial intelligence, but they all turn to Nvidia for their data centers and processors.
Nvidia announced that it expects revenue to be around $11 billion in the second quarter of the year, beating Wall Street analysts’ forecast of $7.15 billion. The company bills very high profit margins, and this translates to a significant increase in profitability.
The data center business grew 14% to $4.28 billion in sales, driven by demand for its powerful processors from cloud service providers as well as large consumer internet companies, which use Nvidia chips to train and deploy generative AI applications such as OpenAI’s ChatGPT.
Investors celebrated it, and shares are up more than 25% from their closing price this Wednesday, at $305 per share, giving the company a market value of $755,000 million. The price has already accumulated a 109% gain before even rallying after the results were published on Wednesday.
The company had no name when it was incorporated in 1993 and the partners started using the initials NV, for next release or the next version. When it came time to come up with a final name, they looked for words beginning with letters nv. Finally, from Latin envy (Envy) They omitted the first letter to put their final name. Your business is now the envy of the industry.
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