The world's most valuable chip-making firm Nvidia's quarterly revenue soared 265%, projecting stronger sales amidst the spending frenzy on artificial intelligence. In the fourth quarter, the company reported $22.1 billion, exceeding Wall Street expectations of $20.4 billion.
According to LSEG estimates, Nvidia's earnings per share had reached $4.93 in the fourth quarter, beating analysts’ expectations of $4.59. Likewise, the net income rose 770% to $12.3bn compared to the same period in the previous year.
Nvidia founder and chief executive Jensen Huang said that the demand for AI has been surging worldwide with accelerated computing and generative AI hitting the tipping point.
Also Read: Nvidia overtakes Amazon and Google in market value; m-cap at $1.83 trillion
“Accelerated computing and generative AI have hit the tipping point,” said Nvidia founder and chief executive Jensen Huang. “Demand is surging worldwide across companies, industries and nations.”
Big Tech companies such as Alphabet, Microsoft, Amazon and Meta have all increased their investment in AI computing. Nividia's leading chips, such as the H100, have become the industry standard for AI developers to crunch data for large language models
“Nvidia has enabled a whole new computing paradigm called generative AI,” Huang said on a call with investors on Wednesday. He said its highly-prized chips were “essentially AI-generation factories” of a new industrial revolution. “Every company is built on their proprietary business intelligence and, in the future, their proprietary generative AI,” he added. “Now every industry is on board.”
At about $1.7 trillion market valuation, Nvidia has eclipsed Google-parent Alphabet as the third most valuable listed company.
As per Financial Times, Nvidia has been the biggest single driver of a rally in the S&P 500 this year, powering about a quarter of the gains on the index.