Semiconductor giant Nvidia is getting a big boost from theย present wave of artificial intelligence (AI) hype. Inย doingย so, company stock is skyrocketing.
Artificial intelligence-related stocks have been increased by an notice from Nvidia that it was increasing production of its Artificialย Intelligenceย (AI) chips to meet surging demand.
Nvidia Flying High on AI
Since the emergence of ChatGPT, tech corporations have been riding the wave of hype to get in on the latest big thing in technology.
On May 24, Nvidia released its earnings report. This increased its stock marketย price by about $200 Billion to over $960 billion. The company informed a record $11 Billion in revenue for the 1st quarter.
Nvidia shares (NVDA) surged around 30 percent in after-hours trading to reach an record-breakingย peak of $394. Furthermore, Nvidia shares are up a whopping 166 percent since the beginning of 2023.
Furthermore, the big stock move extended the companyโs lead as the worldโs most valuable chipmaker and Wall Streetโs fifth-most valuable company, informed Reuters.
Chief Financial Officer Colette Kress stated that generative Artificialย Intelligenceย (AI) was at an โinflection pointโ as OpenAIโs ChatGPT has just had its โiPhone momentโ for the industry. She added:
โItโs put us in a spotlight that we understood would happen. Onย theย otherย hand, itโs just very difficult to determine when that possibility would be there. Onย theย otherย hand, it is here, this inflection is here, the inflection on Artificialย Intelligenceย (AI) and the inflection on Artificialย Intelligenceย (AI) and accelerated computing.โ
Daniel Morgan, a senior portfolio manager at Synovus Trust, commented:
โWith all the enthusiasm around Artificialย Intelligenceย (AI) and the fact Nvidia delivered a huge beat for first-quarter results and second-quarter estimates, this gives some actual evidence Artificialย Intelligenceย (AI) is for real.โ
In March, Nvidia unveiled new chips that it stated would boost the computing speed of increasingly complicated artificial intelligence algorithms. The H100 chip and a new processor wasย known the Grace CPU Superchip will be the core of Artificialย Intelligenceย (AI) infrastructure, reportsย by Nvidia.
Tech Stock Revival
Rival chipmaker Advanced Micro Devices (AMD) likewise saw a increaseย in stock prices. AMD shares jumped 10 percent on the day to trade at $117.12 after-hours. The company stock has gained 83 percent since the beginning of the year.
Other corporations racing to get into Artificialย Intelligenceย (AI) have likewise seen profits in share prices. Microsoft (MSFT) and Alphabet (GOOG) both gained a couple of % in after-hours trading.
