Artificial Intelligence: Runaway Demand For Its AI Chips Catapults Nvidia To Record Quarterly Sales
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.
Nvidia (NASDAQ: NVDA), the leading technology company and chip-maker, has reported record-breaking sales, more than doubling due to high demand for its artificial intelligence (AI) chips. In the three months ending June, revenue surpassed $13.5 billion, driven by strong performance in its data center business, particularly AI chips.
The company anticipates continued sales growth in the current quarter and plans a stock buyback of $25 billion. Nvidia’s shares rose over 6.5% in after-hours trading, adding to its already substantial gains throughout the year. (BBC)
The company projects approximately $16 billion in revenue for the next three months, far surpassing Wall Street estimates and representing a 170% increase compared to the previous year.
Nvidia’s market value has exceeded $1 trillion, making it the fifth US company to achieve this status.
“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI,” said Huang.
The company’s shift from graphics chips to AI hardware has propelled its success, with its products now dominating the machine learning market. These are now in short supply and start-ups and investors are going to great lengths to obtain GPUs due to their role in powering A.I. products that analyze vast amounts of data.
Companies are said to be struggling to access GPUs through cloud computing services due to long waitlists, which has led to technical tips being shared on social media and various creative strategies to secure Nvidia GPUs such as the H100.
Someone commented on the situation: “It’s almost like talking about drugs: ‘I know a guy who has H100s.’”
Related Story: The Critical Shortage Of AI Chips
Image of Jensen Huang: Flickr
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