It was the most valuable company in the world, and was initially rated 4 Torrington (2.9trn), thus beating market expectations with purely expected financial results.
Microchip Maker nvidia It recorded revenue of $46.7 billion (£34.6 billion) in just three months to July, and its latest financial data is slightly better than Wall Street observers expected.
The company's performance is seen as a pioneer of AI demand, with investors taking great care to see if the hype is exaggerated or if a large investment will pay off.
Originally the creator of gaming graphics hardware, Nvidia's chips support the power of AI capabilities and the UK's most powerful supercomputers.
Nvidia's graphics processors support products such as Openai's ChatGpt and Google's Gemini.
Other tech giants – Microsoft, Meta, Amazon – make up Nvidia's biggest customers and pay large sums to embed AI into their products.
Why is it important?
Nvidia is at the heart of the AI development boom and the surge in tech stock valuations, with the stock market reaching record highs.
This represents approximately 8% of the value of the US S&P 500 Stock Market Index for stable and profitable companies.
Strong results will continue to drive highs on the market record. Conversely, unbearable outcomes can lead to market overturns.
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Nvidia itself saw its share price has risen by more than 40% over the past year. Its value affects people who have cash on the US stock market, such as pension funds.
The S&P 500 has risen 14% over the past year, with Nasdaq, a large tech company, gaining 21%, mainly thanks to Nvidia.
Therefore, its revenues could move through the market as well as major economic or monetary policy announcements, such as interest rate decisions.
Keir Starmer, Nvidia Chief Huang, London Tech Week. Photo: AP
What's next?
The revenue rise is expected to continue to rise as Nvidia said it is expected to rise to around $54 billion (£4 billion) over the next three months, exceeding the expected $53.14 billion (£39.3 billion) by analysts.
This excludes potential shipments to China as an export of Nvidia's H20 chips designed with the Biden administration's export of exports of advanced AI powered chips in mind, and as an export of Nvidia's H20 chips, but was banned for US national security reasons.
However, in recent weeks, Nvidia and another chip maker, AMD. An unprecedented agreement has been reached To pay the Trump administration, they will pay a 15% portion of China's sales in return for export licenses to send tips to China.
In the second quarter of this year, there were no H20 sales to China at all. This is the period when results were announced on Wednesday evening.
Previously, 13% of Nvidia's revenue came from China, and nearly 50% came from the US.
Market reaction
Despite the expected outcome, NVIDIA shares fell in trading outside of business hours as large revenues previously booked by the Company were not repeated in the most recent quarter.
Compared to a year ago, revenues increased by 56% and 6% compared to the three months leading up to April.
The lack of Chinese sales in forecasts seemed disappointing.
