Like no other company, Nvidia provides the technical platform for applications with artificial intelligence. This brings billions into the chip company’s coffers.
The business of the chip company Nvidia continues to grow explosively due to the AI boom. In the last quarter, sales rose from $7.2 billion the previous year to $26 billion – an increase of 262 percent. And demand remains strong: Nvidia’s new chip systems are expected to experience bottlenecks well into the coming year.
Nvidia technologies were originally developed for graphics cards. But then it turned out that they were also ideal for the computing work involved in training applications with artificial intelligence. Nvidia’s chips thus became a key technology for the future of AI – and the company also benefits from the business with associated software and services.
Nvidia technology is now no longer just used for training, but also for operating AI applications, emphasized CEO Jensen Huang. This has the potential to be an even more stable business. Although training requires enormous computing power, it is only necessary once per AI model. Huang also assumes that AI will generate all kinds of content in the future that is currently retrieved from databases.
“New Industrial Revolution”
The data center technology business grew particularly strongly in the last quarter. At $22.6 billion, sales were more than five times higher than a year ago, as Nvidia announced after the US stock market closed. Even within three months, there was still an increase of 23 percent. In a conference call with analysts, Huang spoke of a “new industrial revolution”. A new type of data center is on the rise: “AI factories.”
Nvidia now wants to introduce a new generation of its chips every year, said Huang. In March he presented the “Blackwell” chip system. It is currently in production and the first devices are expected to go to customers in the coming months. “Blackwell” is much more powerful than the previous generation “Hopper” – and not only tech giants such as the Facebook group Meta and Amazon’s cloud division AWS are on the customer list.
Sales increase to 28 billion dollars expected
For the current quarter, the company forecast a further increase in sales to 28 billion dollars – while analysts on average had expected a forecast of just under 27 billion dollars.
Nvidia also operates the “Omniverse” platform, which companies can use to better control their factories using so-called digital twins and, among other things, supplies Mercedes with car computers for driving assistance functions.
Nvidia’s quarterly profit jumped from a good $2 billion to just under $14.9 billion year-on-year. The share rose by a good six percent in after-hours US trading and exceeded the $1,000 mark for the first time. Nvidia also announced a dividend increase and a 1-for-10 stock split.
Source: Stern
