Nvidia triples turnover thanks to artificial intelligence boom
The company founded by Jensen Huang increased its net income by 769% after another record quarter.
Nvidia’s streak of hell continues unabated. It is without a doubt the hottest company in US markets at the height of the artificial intelligence boom, a market it clearly dominates. On Wednesday he made it clear again that stratospheric results for the last quarter of 2023. Its quarterly revenue tripled to $22.1 billion, well above the $20.4 billion Wall Street analysts had projected, and net income rose from $1.4 billion a year ago to $12.285 million in the final three months of reporting, up 769%.
The reaction to the results was immediate: the value of its securities on the market increased by up to 10%. after hours. This is after signing this year the revaluation was 40% and will triple the value of its securities in 2023. The big question is whether it can maintain this streak, although at the moment it can already boast of being the sixth most valuable company in the world. If the euphoria continues tomorrow, it will surpass Amazon and Google in market capitalization.
Jensen Huang its founder and CEO attributes this to “the tipping point that AI has reached. Demand is growing globally across companies, industries and countries,” he said in a statement, citing increased demand for data processing, cloud services, enterprise software companies and consumer internet. “Vertical industries (led by automotive, financial services and healthcare) are now reaching multi-billion dollar levels.”
This is why billing expectations for the coming months are also high. The company, based in Santa Clara, California, plans to enter several $24 billion in the first quarter of 2024, higher than analysts’ expectations. There are currently no signs of slowing down for the corporation, whose market value topped a trillion dollars in June, reached $1.8 trillion a few days ago, and has retreated slightly in the past two days.
Its mastery of artificial intelligence is evident, even as other tech giants struggle to gain a foothold. Both Microsoft, Apple and Google still need Nvidia chips to maintain this bet. a company that went from making microprocessors for the latest video games to being at the epicenter of the artificial intelligence boom.
While its products were changing hands for $148 in January, they now cost around $700 per unit, an explosive growth many attribute to Huang’s decision to open up the use of its chips for applications beyond graphics, including scientific and medical research. In 2012, the company began to aggressively position itself in the field of artificial intelligence and is now reaping dividends from its bet.
His main problem now is power meet huge demand that it faces around the world is a good problem for the microprocessor giant, which has become one of the great thermometers of the American economy.