Tech firm Nvidia sales soar as AI chip demand rises
Technology firm Nvidia says its sales have hit a record after almost doubling as demand for its artificial intelligence (AI) chips rises.
The firm says revenue jumped past $13.5bn (£10.6bn) for the three months to the end of June.
Nvidia predicts sales to zoom further in the recent quarter and intends to buy back $25bn of its shares. The company’s shares climbed by more than 6.5% in extended trading in New York, adding to their vast profits this year.
Nvidia even said it predicts an income of around $16bn for the three months to the end of September. That is much higher than Wall Street anticipations and would equate to a rise of nearly 170% compared to last year.
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“A new computing era has begun,” Nvidia’s chief executive, Jensen Huang, stated. “Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” he continued.
The robust performance was caused by Nvidia’s data centre business, which has AI chips.
Earnings for that unit came in at around $10.3bn, a rise of almost 170% from a year back, as cloud computing service providers and large customer internet firms snapped up its next-generation processors.
This year, Nvidia’s share market value has soared to more than $1 trillion as its stock more than tripled. That made it the fifth publicly traded US firm to join the so-called “Trillion dollar club”, along with Apple, Microsoft, Alphabet and Amazon.
