Nvidia emerges as one of the big winners of the artificial intelligence boom. The company based in Santa Clara (California) manufactures computer processors with great computing power, just the ones that are in demand due to the momentum of new technology. The company has announced revenue forecasts well above analysts’ forecasts and has shot up on the stock market by around 25% in trading outside of normal session hours.
the tech company announced this Wednesday at the close of the market which has achieved income of 7,190 million dollars (about 6,700 million euros) in the first quarter of the year (February to April), 13% less than a year ago (due to the decline in the video game business) and 19% more than in the previous quarter. The benefit of those first three months has been 2,043 million dollars, 26% more than a year ago and 44% more than the previous quarter. The company usually offers both comparisons, given the strong growth rate it has had in its history.
“The computing industry is going through two simultaneous transitions: accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia, through a statement. “A trillion dollars of installed global data center infrastructure will shift from general purpose to accelerated computing, as companies rush to apply generative AI to every product, service and business process,” he added.
The high-power processors that Nvidia designs and manufactures have been added to different booming businesses. In its 30-year history, Nvidia has pioneered graphics processing for computers and video game consoles. To have ever better images, it has been increasing the power of its processors exponentially, with capabilities for robotics, cloud computing, aerospace, weapons manufacturing, the metaverse, autonomous driving, image recognition and , of course, artificial intelligence.
Amazon Web Services, Google Cloud, Microsoft Azure and Oracle are among the firms vying to lead in artificial intelligence, but all of them turn to Nvidia for their data centers and processors.
Nvidia has announced that it expects revenue to be around $11 billion in the second quarter of the year, pulverizing forecasts of $7.15 billion made by analysts on Wall Street. The company invoices with very high margins, so that translates into a large increase in profitability.
The data center business grew 14% to sales of $4.28 billion, driven by demand for its powerful processors from cloud service providers as well as large consumer Internet companies, which use Nvidia chips to train and deploy generative AI applications like OpenAI’s ChatGPT.
Investors have celebrated it and the shares have skyrocketed by more than 25% over the closing price this Wednesday, at $305 per share, which gives the company a market value of $755,000 million. The price already accumulated a rise of 109% even before the rise after the publication of the results this Wednesday.
The company had no name when it was founded in 1993 and the partners began using NV, initials for next version, or next version. When the time came to put a definitive name, they looked for words that began with the letters nv. Finally, from the Latin envy (envy) they deleted the first letter to put their final name. Your business is now the envy of the industry.
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