Artificial intelligence chipmaker Nvidia is now worth nearly $1 trillion

Featured Sponsor

Store	Link	Sample Product
UK Artful Impressions	Premiere Etsy Store

Shares of Nvidia, currently one of the world’s most valuable companies, have soared over the past week after the chipmaker forecast a big rise in revenue, in a sign of how widespread use of artificial intelligence could reshape drastically the technology sector.

The Santa Clara, California-based company is poised to join the exclusive club of $1 trillion companies like Alphabet, Apple and Microsoft after its shares jumped more than 24%.

On Wednesday the 24th, the maker of gaming and artificial intelligence chips announced quarterly profit of more than $2 billion and revenue of $7 billion, beating Wall Street expectations.

His sales projections of $11 billion for this quarter surprised Wall Street. That’s a 64% year-over-year increase over the same period and well above industry analysts’ $7.2 billion forecast.

Chipmakers around the world were buoyed by the news. Taiwan Semiconductor shares rose 3%, while South Korea’s SK Hynix gained 6%. Netherlands-based ASML rose 5%.

Jensen Huang, founder and CEO of Nvidia, said that the world’s data centers need to undergo a transformation due to the revolution that will come with AI technology.

“The world’s $1 trillion data center is almost entirely occupied by central processing units (CPUs) today,” Huang said.

AI chips are designed to perform artificial intelligence tasks faster and more efficiently. While general-purpose chips like CPUs can also be used for simpler AI tasks, “they are becoming less and less useful as AI advances,” notes a 2020 report from the Center for Security and Technology. Emerging from Georgetown University.

Analysts say Nvidia could be an early example of how AI can reshape the tech industry. “Last night, Nvidia delivered an incredibly strong guide that will be heard around the world and shows the historic demand for AI that is happening right now in the corporate world and the consumer market,” Wedbush’s Dan Ives wrote. Source: Associated Press.

Related