Nvidia expects threefold jump in quarterly sales, beating estimates and sending stock up as AI demand remains high
- CEO Jensen Huang says there is no way Nvidia can ‘reasonably’ keep up on demand for its AI chips in the short term
- The AI poster child’s revenue has continued to grow despite tightened restrictions on trade with one of its largest markets: China
The already-hefty demand for the company’s data centre chips and graphics processing units (GPUs) continues to grow as firms scramble to expand their AI offerings. Nvidia’s silicon dominates the global market for AI chips, where it counts the likes of Microsoft among its customers.
“The market was poised to sell the news following Nvidia’s earnings, given the sky-high expectations and deteriorating macro conditions,” Investing.com analyst Thomas Monteiro said.
“However, once again, the company left no doubt that the AI boom is much more than just a stock market narrative, but rather, the most significant bet from corporations worldwide at this moment.”
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Apple supplier Foxconn to build ‘AI factories’ using US hardware leader Nvidia’s chips and software
The late-day stock jump lifted the market capitalisation of the Santa Clara, California, company by more than US$129 billion, and pushed up the shares of other AI-related companies including chip designer Arm Holdings. Nvidia and other hardware suppliers linked to AI computing added US$160 billion of combined stock market value.
