The artificial intelligence boom has pushed demand for Nvidia products beyond Wall Street’s already high expectations.
The company announced fourth-quarter results on Wednesday that significantly beat analysts’ expectations, with revenue of $22.1 billion versus the $20.55 billion expected and earnings of $4.93 per share versus the $4.64 expected. became. Revenue increased 22% sequentially and 265% year over year.
Revenue from data centers, Nvidia’s most-watched revenue, increased more than 400% year-over-year to $18.4 billion.
Nvidia founder and CEO Jensen Huang said in a press release: “Accelerated computing and generative AI have reached a tipping point. Demand is surging around the world across companies, industries, and nations.”
Nvidia’s earnings and stock demand are seen as a bellwether for overall interest in artificial intelligence, as the company relies heavily on its products to develop AI. Microsoft, OpenAI, Amazon, Meta, and Google have all signed deals to buy the company’s chips in bulk as they race to release new AI products and features.
Some major companies, including OpenAI’s Sam Altman, are launching their own AI chip ventures to compete with established Nvidia, which would likely cost hundreds of billions of dollars. .
Nvidia plans to ship a new chip, the B100, which will be the top of its product line, in 2024, raising expectations for explosive growth. Nokia and Nvidia on Wednesday announced a partnership to develop AI solutions that can improve communications infrastructure.
Wall Street has come to expect big growth from Nvidia. Analysts’ baseline forecast on Wednesday was for sales to increase his 240%. Tech companies are rushing to develop AI products that leverage the company’s proprietary AI chips and software, considered the best on the market.
Nvidia’s revenue tripled last quarter, and its profits for the past four quarters have exceeded analyst expectations.
The company’s stock price has more than tripled over the past year, valuing the company at more than $1.5 trillion. The company surpassed Google and Amazon in market capitalization last week, making it the world’s third-largest company by value within days.
Source: www.theguardian.com
