The shares rose significantly following Nvidia’s first-quarter report, which highlighted a 19 percent quarter-on-quarter boost in revenue, significantly surpassing expectations
Nvidia is a leading manufacturer of cutting-edge chips essential for the training of Artificial Intelligence (AI) services, a sector that’s seen a tsunami of financing fueled by the buzz around OpenAI’s ChatGPT and similar AI-powered tools.
“ 2 simultaneous transitions–accelerated computing and generative AI,” stated the firm’s founder and CEO Jensen Huang.
“A trillion dollars of installed worldwide data center infrastructure will transition from general-purpose to accelerated computing as corporations race to apply generative Artificial Intelligence (AI) into every product, service, and business process,” he stated in the firm’s latest quarterly report.
Huang likewise revealed that the company had commenced full-scale production of its latest Artificial Intelligence (AI) chips as early as August last year.
This foresight gave them a safety net when the popularity of chatbot applications surged unexpectedly. “In January, the new demand was incredibly steep,” stated Huang, adding that the company “had to place additional orders, and we procured substantially more supply for the Second half” of 2023.
Artificial Intelligence (AI) around the market
The strong performance not only lifted Nvidia’s own stocks but likewise fueled the expansion of shares in other AI-related firms.
These include competitor chip manufacturer Advanced Micro Devices, generative Artificial Intelligence (AI) advocates Microsoft and Google, Artificial Intelligence (AI) software founder C3.ai, and Palantir Technologies, between others.
The esteemed “trillion-dollar club” consists of only 5 members: Apple, Saudi Aramco, Microsoft, Alphabet, and Amazon. Both Tesla, Inc. and Meta briefly enjoyed membership in 2021, until sliding off early last year.
Should these profits hold at market open today, Nvidia stands to expand its existing $755 Billion market cap by an extra $219 billion in a single day.
This would exceed Amazon’s record-setting $191.2 Billion increase on February 4, 2022.
