Nvidia has released its financial report for the first quarter results. Nvidia’s published report included strong quarterly results but poor year-over-year results. But it’s not this quarter that matters.The company said its second quarter revenues will be 50 percent above the estimates. Nvidia also said it has increased supply to meet the growing demand for AI chips used to power ChatGPT and many similar services. After these statements, the shares took flight.
Artificial intelligence flew Nvidia
Shares of Nvidia, the world’s most valuable semiconductor company traded on the stock market, rose almost 30 percent to a record high, trading at $391.50. This gain increased Nvidia’s market value by nearly $200 billion, to over $950 billion. As of now, the firm’s market capitalization is fixed at $755 billion.
AMD, ($175 billion), Intel ($120 billion), and Micron ($73 billion) add up to $368 billion.
Nvidia Chief Executive Officer Jensen Huang said they started full production of the AI chips in August last year, allowing them to provide some buffer for supply as AI chatbot apps grow in popularity. However, according to Huang, new demand for new AI GPUs increased so much in January that Nvidia had to place new production orders and struggled to keep up with demand. However, with the new orders, significant assurance has been provided for the second half of 2023.Analysts predict that demand for Nvidia’s artificial intelligence GPUs will increase even more. In addition, Nvidia faces competition in AI solutions from traditional competitors like AMD and Intel, as well as in-house AI chip development from startups like Cerebras Systems and companies like Google and Amazon.
Huang seems comfortable with this: “No company can build a cutting-edge AI data center without the technology and all the software from a cloud computing provider, but we have all that capability.”
Therefore, there is a very successful situation for Nvidia here. The company made a big leap by bringing the right product at the right time to the right need.
financial results
Nvidia posted quarterly revenue of $7.19 billion, up 19 percent from the previous quarter. Data Center revenue generated a record $4.28 billion. The firm expects revenue of $11.00 billion for the second quarter of fiscal 2024. Revenue for the first quarter, ending April 30, 2023, increased quarter-on-quarter, but fell 13 percent year-on-year. Net income was $2 billion, up 44 percent quarter-on-quarter and 26 percent year-on-year.On the games side, first-quarter revenue was $2.24 billion, down 38 percent from a year ago and up 22 percent from the previous quarter. First-quarter revenue in the automotive segment reached a record $296 million, up 114 percent from a year ago and 1 percent from the previous quarter.
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