Nvidia last Wednesday, May 22, released information about the financial results of its activities in the last quarter, which proved that this company continues to be one of the main beneficiaries of the so-called artificial intelligence boom.
The mentioned firm’s revenue for the three-month period ending April 28, 2024, was fixed at $26 billion. This indicator showed an increase of 262% compared to the result for the same period last year. The company’s revenue also grew by 18% relative to the figure recorded in the previous quarter.
Nvidia’s data center revenue for the three-month period ended April 28 was $22.6 billion. This indicator grew by 427% year-on-year. Also, the specified figure increased by 23% compared to the result for the previous quarter.
Nvidia’s financial indicators exceeded expectations. LSEG experts predicted that the company’s revenue for the quarter ended April 28 would amount to $24.65 billion.
Logan Purk, an analyst at Edward Jones, says that demand for Nvidia’s graphic processor units (GPU) chips is still high, noting in this context that the financial indicators of the company’s activities are sufficient to satisfy investors’ appetites and convince the market that investments in artificial intelligence have not slowed down yet.
Currently, the company’s market share in microcircuits for AI systems is more than 80%. As part of this state of affairs, Nvidia is both the largest supplier of chips and the beneficiary of the rapid development of the artificial intelligence industry.
The company is signaling to investors that its customers, who spend billions of dollars to buy chips, will also be able to make money off artificial intelligence. Currently, Nvidia is concerned that clients may not spend much money on AI infrastructure before they need at least a minimal profit.
If the company’s chips can provide strong and sustainable returns on investment, the artificial intelligence boom will continue. It is worth noting that currently the relevant process, despite its significant scale and impressive intensity, is still at an early stage, as many companies are working on long-term projects. At the same time, some AI-based products are already what can be described as an unambiguous accomplished fact. For example, chatbots such as ChatGPT from OpenAI have demonstrated impressive abilities in understanding and analyzing information and generating original content, while continuing to be on a development trajectory.
Nvidia is also a beneficiary of the emergence of a large number of specialized startups. Such companies are at an early stage of existence, specialize in GPU data centers, and buy products from the mentioned firm.
Nvidia founder and CEO Jensen Huang said in an earnings release that the firm’s revenue growth is because brands and countries cooperating with the chip developer have transitioned from traditional data centers to artificial intelligence factories. In his opinion, this tendency will help to increase the level of productivity in most spheres of activity.
As we have reported earlier, Nvidia and Kyndryl to Help Businesses Implement GenAI.
