SANTA CLARA (dpa-AFX) – The AI boom is causing the chip company NVIDIA’s business to continue to grow explosively. In the last quarter, sales jumped 62 percent year-on-year to $57 billion (49.4 billion euros). Nvidia exceeded Wall Street’s expectations. Even compared to the previous quarter, there was an increase of 22 percent, as the company announced on Wednesday.
Nvidia shares recently rose by more than three percent in after-hours trading. Prices of other chip companies were also up. Shares of major Nvidia customers Google (Alphabet C (ex Google)), Microsoft, Amazon and Meta (Meta Platforms (ex Facebook)) also went up. Nvidia chip systems have become a key technology for the development of software with artificial intelligence. They are used for the complex training of AI models, for example for the chatbot ChatGPT – as well as for operating the software. The Nvidia results have become an indicator of the state of the AI industry.
In recent weeks, concerns have grown on the stock markets that the great expectations for the future business with artificial intelligence could have led to a bubble in the share prices of tech companies. Accordingly, investors let out some air. Nvidia’s market value fell from $5 to around $4.5 trillion within a few weeks. The chip company remains the most valuable company on the stock exchange.
The bottom line is that Nvidia increased its quarterly profit by 65 percent year-on-year to $31.9 billion. The group’s earnings per share were above analysts’ estimates. Nvidia also clearly exceeded their expectations with its forecast of $65 billion in sales for the current quarter. On average, the market experts had expected a prediction of a good 61.5. Nvidia continues to achieve growth without the once important Chinese market, in which the group currently no longer has any business following US export restrictions and government countermeasures in China./so/DP/he
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