Nvidia profits soar as AI boom shows no signs of slowing | Technology

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The California-based company reported a seven-fold increase in first-quarter profit to $14.88 billion.

Nvidia, the chipmaker at the center of the artificial intelligence (AI) boom, reported a sevenfold increase in profits and its shares hit an all-time high.

The Santa Clara, Calif.-based company announced Wednesday that first-quarter net income rose to $14.88 billion from $2.04 billion a year earlier.

Revenue more than tripled to $26.04 billion, beating analyst expectations by a wide margin.

Nvidia said it expected second-quarter sales to rise plus or minus 2% to $28 billion, also exceeding analysts' expectations.

Nvidia also announced a 10-1 split on June 7 to make its stock more accessible, and a 150 percent increase in its quarterly dividend to 1 cent per share.

Stock splits increase the number of outstanding shares without affecting a company's market capitalization, making each share cheaper for investors to purchase.

Nvidia shares, which have risen more than 90% this year, rose 5.9% to surpass the $1,000 mark.

“The next industrial revolution has begun,” Nvidia CEO Jensen Huang said on a conference call with analysts.

“Companies and countries are partnering with Nvidia to move trillions of dollars of traditional data centers to high-speed computing and build a new type of data center – the AI ​​factory – to produce a new commodity: artificial intelligence. doing.”

Huang said he expects demand for Nvidia's chips to outstrip supply for some time, and the company is “competing every day” to fill orders.

Nvidia has seen demand for its graphics processing units soar over the past year as tech giants such as Google, Meta, OpenAI and Amazon compete for dominance in AI.

In March, Nvidia's market capitalization exceeded $2.1 trillion, overtaking Saudi Aramco to become the world's third-largest company after Apple and Microsoft.



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