Nvidia, the world’s largest manufacturer of chips, has set a new sales record, indicating that artificial intelligence is still popular despite concerns that the technology may be overhyped.
The most valuable company in the world, Nvidia, announced on Wednesday that it had earned $46.74 billion for the three months ending in July, an increase of 56% year over year.
The quarter’s profit reached $ 26.42 billion, up 59 percent from the previous quarter’s increase.
The tech giant’s most recent earnings report was eagerly awaited because it was widely believed to be a sign of the AI boom that had propelled the US stock market from an all-time high.
Production of Blackwell Ultra, Nvidia’s most recent platform, was “at full speed,” according to Nvidia CEO Jensen Huang, and the demand for the company’s products was “extraordinary.”
“Blackwell is the platform at the center of the AI race,” Jensen said.
The Santa Clara, California-based tech giant predicted revenue of $ 54 billion, or 2%, for the July-September quarter, which would be slightly above market expectations.
Nvidia’s stock price decreased by more than 3 percent in after-hours trading despite the company’s robust results, which shows how high expectations are placed on the chipmaker, which is worth more than $4.4 trillion.
Nvidia’s sales, in particular, did not include any deliveries to China, whose export laws intended to stifle Beijing’s development of artificial intelligence (AI) are in place by the US government.
Following concerted lobbying by Huang, US President Donald Trump’s administration earlier this month lifted a ban on sales of Nvidia’s H20 chip, which was created specifically for the Chinese market.
Nvidia agreed to pay the US government 15% of chip sales in China as part of the deal it made with the Trump administration.
Although Nvidia’s prospects have been hampered by a recent directive from Beijing urging local businesses to refrain from doing business with the company, the H20’s lifting raises the possibility that the company may have enormous untapped sales potential in the second-largest economy.
If the China business even comes back to life, according to The Kobeissi Letter, a newsletter published after capital markets, “just imagine what will happen to this stock.”
“Jensen Huang will undoubtedly be working overtime to improve the situation in China. The AI revolution is in full swing.
Over the past two years, Nvidia’s revenue has grown at a rate never before seen due to the explosion in demand for its AI.
Between mid-2019 and 2024, the business increased revenue by triple digits for five straight quarters.
Nvidia shares have increased by more than 11 times since the start of 2023, and the stock has increased by more than 30% this year.
The company’s impressive performance, supported by multibillion-dollar AI investments by tech giants like Microsoft, Meta, and Amazon, has sparked debate about whether artificial intelligence might be in a bubble.
Source: Aljazeera
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