Technology behemoth Nvidia claims that as demand for its artificial intelligence (AI) chips surges, its revenues have reached a record after more than doubling. The corporation reports that for the three months ending in June, revenue increased to almost $13.5 billion (£10.6 billion). Additionally, Nvidia anticipates even higher sales in the upcoming quarter and intends to repurchase $25 billion worth of its shares. The company’s shares increased by more than 6.5% in late-night New York trade, adding to their tremendous gains so far this year. Additionally, Nvidia stated that it anticipates sales of roughly $16 billion for the three months ending in September. That is substantially greater than what Wall Street anticipated, and it would represent an increase of over 170% from this time last year. Jensen Huang, the chief executive of Nvidia, declared in a statement that “a new computing era has begun.” Businesses all over the world are switching from general-purpose computing to accelerated computing and generative AI, he continued. Nvidia’s data center business, which sells AI hardware, was the main driver of the impressive success. Due to the demand for its next-generation processors from large consumer internet companies and cloud computing service providers, revenue for that unit increased by more than 170% year over year to more over $10 billion. Nvidia’s stock market worth increased by more than $1 trillion this year as the value of its shares more than tripled. Along with Apple, Microsoft, Alphabet, and Amazon, it became the fifth publicly traded US corporation to enter the infamous “Trillion Dollar Club” as a result. Originally, Nvidia was recognized for producing the kinds of computer chips used to generate images, especially for video games. Today, its hardware powers the majority of AI applications; according to one study, it has a monopoly on 95% of the machine learning market. 10,000 Nvidia graphics processing units were grouped together in a Microsoft supercomputer to train ChatGPT, which produces human-like responses to user inquiries in a matter of seconds. Artificial intelligence (AI) products are predicted to fundamentally alter how we use computers and how they function in our lives.
