1692831509 Nvidias sales are doubling thanks to the rise of artificial

Nvidia’s sales are doubling thanks to the rise of artificial intelligence

Nvidias sales are doubling thanks to the rise of artificial

Nvidia is the big winner of the generative artificial intelligence boom. Its powerful microprocessors are essential for the cloud computing load that new technologies require. His reports reflect this more and more clearly. Revenue for the Santa Clara, California-based tech company doubled in the second quarter of its fiscal year ended July 30 from the same period last year, the Securities and Exchange Commission, the U.S. Securities and Exchange Commission, reported at the close of trading on Wednesday. .

Nvidia posted revenue of $13,510 million (about €12,440 million at current exchange rates) in the second quarter of the year, up 101% from the same period last year and up 88% from the same quarter last year.

Earnings rose even more sharply to $6.188 billion, up 843% year over year and tripling from the first quarter. The figures exceed the analysts’ already optimistic forecasts.

“A new computing age has begun. “Enterprises around the world are transitioning from general-purpose computing to accelerated computing and generative AI,” said Jensen Huang, Nvidia founder and CEO, in a statement. The glamorous success of OpenAI’s ChatGPT has demonstrated the power of the new technology and has seen the number of orders betting on it skyrocket.

“During the quarter, major cloud service providers announced large-scale NVIDIA H100 AI infrastructures. Leading enterprise IT software and systems vendors have announced partnerships to bring NVIDIA AI to all industries. “The race to adopt generative AI is on,” he added.

During the quarter, Nvidia returned $3.38 billion to shareholders in the form of 7.5 million share repurchases for $3.28 billion and cash dividends. At the end of the second quarter, the company had $3.95 billion remaining under its share repurchase authorization. On August 21, 2023, the board approved an additional $25 billion share repurchase with no expiration date.

Nvidia has joined the club of companies worth more than $1 trillion this year. Shares of the microprocessor company are up 229% this year and are near historic highs. For off-hours trades, the price shot up another 10% in response to the published results.

Nvidia presented good first quarter results last May, but more importantly some very meaningful second quarter guidance that took the market completely by surprise. He then announced a revenue forecast of around $11 billion, smashing Wall Street analysts’ forecasts of $7.15 billion. But in the end, even that number fell far short of reality. The company invoices with very high margins, which leads to a significant increase in profitability.

After the sales record in the second quarter, another should follow in the third, according to the forecast by the company, which expects sales of around $16 billion between August and October. Data centers have become the growth engine, but sales are also increasing in other areas such as visualization, gaming and self-driving cars.

Founded in California in 1993, Nvidia pioneered graphics processing for computers and video game consoles. In 1999, Nvidia invented the GPU, the graphics processing unit that set the stage for sweeping changes in the industry. In order to get better and better images, it has increased the power of its processors exponentially, with capabilities for robotics, cloud computing, aerospace, weapons manufacturing, the metaverse, cryptocurrencies, autonomous driving, reconnaissance imaging, and artificial intelligence.

Jensen Huang, 60, co-founded the company with Chris Malachowsky and Curtis Priem with a vision of bringing 3D graphics to the gaming and multimedia markets. Since then he has run it and has become the CEO of a large company with the longest track record in all of Silicon Valley. With Nvidia’s stock market appreciation, Huang’s fortune has skyrocketed. He owns approximately 87 million shares of the company (3.5% of capital) valued at approximately $44,000 million.

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