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Nvidia says growth will continue as AI reaches 'tipping point'| GuyWhoKnowsThings


NVIDIA, the The central axis of the chips that drive artificial intelligenceIt released its quarterly financial results on Wednesday that again showed breakneck growth and said the increases would continue, underscoring how it has become one of the world's most valuable companies.

Nvidia is one of the most visible winners of the AI ​​boom and one of the tech stocks, known as “Magnificent seven”, which have helped boost the stock market. Investors have bet heavily on continued demand for its expensive, specialized semiconductors, which are used for training. popular AI services like OpenAI's ChatGPT chatbot.

Nvidia's valuation has risen more than 40 percent to $1.7 trillion since the start of the year, helping it briefly eclipse the market values ​​of Amazon and Alphabet recently before falling back to the fifth-largest technology company. valuable.

From the company stock market profits They are largely the result of repeatedly exceeding analysts' growth expectations, a feat that becomes more difficult as they continue to raise their predictions.

Nvidia reported that revenue in its fiscal fourth quarter tripled from a year earlier to $22.1 billion, while profits jumped nearly ninefold to $12.3 billion.

Revenues reached above the $20 billion the company predicted in November, although below some analysts' estimates that had recently risen as high as $23 billion.

Nvidia predicted revenue in the current quarter would total about $24 billion, also more than triple the prior-year period and more than analysts' average forecast of $22 billion. The company's shares rose in after-hours trading.

Jensen Huang, co-founder and CEO of Nvidia, argues that a momentous shift to upgrade data centers with chips needed to train powerful AI models is still in its early stages. That will require spending roughly $2 trillion to equip all buildings and computers to use chips like Nvidia's, he predicts.

“Accelerated computing and generative AI have reached the tipping point,” Huang said in a press release. “Demand is increasing around the world in companies, industries and countries.”

One factor driving Nvidia's latest revenue growth is the ability of the company's manufacturing partners, led by Taiwan Semiconductor Manufacturing Company, to ramp up supplies of Nvidia's flagship AI chip, which has prices ranging from $15,000. and $40,000.

But giant cloud computing companies like Amazon, Google and Microsoft are designing your own AI chips to use in addition to Nvidia's, and rival chipmakers continue to introduce their own AI products.

Intel, which has long dominated the standard microprocessor chip industry but lags in AI, gathered a host of partners and potential customers in Silicon Valley on Wednesday to discuss its plans to offer manufacturing services, which could boost industry's ability to build AI chips. Among those in attendance was Sam Altman, who relies heavily on Nvidia chips as CEO of OpenAI.

“Intel was once the evil Borg of the industry,” said Daniel Newman, chief executive of Futurum Research, which follows the semiconductor industry. Now, he said, “companies are banding together to make sure Nvidia doesn't become much more powerful.”

The Biden administration has raised another set of obstacles for Nvidia and other American chipmakers, imposing restrictions on their chip sales in China. Nvidia has responded by selling less powerful versions of some products on the market.


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