NVIDIA Stock: Threat of inflation leads to fewer hires at NVIDIA

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• EU: Inflation rate increases by 2.5 percent

• NVIDIA slows hiring process

• Record sales in the first quarter of fiscal year 2023

Current economic situation

For several weeks, the war in Ukraine has pushed energy and raw material prices to unprecedented heights. And the economic sanctions against Russia are also difficult for companies to cope with t-online explained. Although it is necessary to become more independent from Russia and China, the reorganization to new suppliers is a challenge and not exactly cheap. In addition, China is still suffering from the consequences of the corona pandemic, which is why entire parts of the country, their ports and industrial companies are currently unable to operate or deliver. Also of concern is that economic growth in the US and Europe is slowing while prices are rising at the same time. Since January, for example, the annual inflation rate in the EU has risen from 5.6 percent to 8.1 percent (as of May 31, 2022).

Fewer new hires at NVIDIA

Due to the risk of inflation and the general global economic situation, hardware manufacturer NVIDIA has decided to scale back its hiring process. This emerges from a report by Techstory. According to this, the company is said to be concentrating primarily on looking after existing employees and has declared that it wants to hire fewer employees. According to an internal Slack message, management is said to be taking a break to onboard hundreds of new hires recently. More precisely, the internal message states that from now on only every tenth person who manages to get an interview should be hired.

Successful first quarter

But despite the worrying global economy, NVIDIA had a successful first quarter. According to this, the manufacturer generated record sales of 8.29 billion US dollars in the first quarter of fiscal year 2023, 46 percent more than in the same quarter of the previous year. The company achieved record sales primarily in the areas of data centers and gaming. “We’re preparing for the biggest wave of new products in our history, with new GPU, CPU, DPU and robotic processors rolling out in the second half of the year. Our new chips and systems will include AI, graphics, Omniverse, self-driving cars and robotics, as well as the many industries that these technologies will impact,” said Jensen Huang, NVIDIA founder and CEO of the company’s future plans.

E. Schmal / Editor finanzen.net

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