2023-11-22 00:42:28
Nvidia is riding the AI wave more successfully than almost any other company. In its quarterly report presented on Tuesday after the stock market closed, the American semiconductor company once again exceeded expectations and reported breathtaking growth. He tripled his sales compared to the previous year and even increased his net profit more than thirteen times.
He owes these leaps to his previously dominant position in the market for chips that are used for applications related to artificial intelligence. Since the launch of the AI system ChatGPT, produced by Open AI, almost exactly a year ago, the technology industry has been in a gold rush mood in this area. Nvidia benefits from this because the company’s powerful chips, which can carry out calculation steps in parallel, are well suited for complex AI applications.
This has also helped the company to soar on the stock market. Its share price has more than tripled since the beginning of the year. At the end of May, its market value became the first chip provider in history to exceed the $1 trillion mark. The market capitalization is currently $1.2 trillion.
Sales were far above expectations
The business figures for the last quarter were well above expectations. Sales amounted to $18.1 billion; analysts on average had expected $16.2 billion. A year ago it was $5.9 billion. Net income jumped from $680 million to $9.2 billion. Earnings per share of $4.02 were 65 cents above expectations.
Nvidia is also optimistic for the coming quarter. The company forecasts revenue of $20.0 billion, which would more than triple from last year’s $6.1 billion.
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However, Nvidia also highlighted a weak point, which could have contributed to the share price initially being slightly in the red after trading: new export restrictions by the US government ensure that the company is no longer allowed to sell some of its most powerful chips in China and some other markets . According to him, this was hardly noticeable in the past quarter. But Nvidia expects these regions to experience declines in sales in the coming quarter.
That would be noticeable losses because, according to Nvidia, these markets each accounted for 20 to 25 percent of sales in the AI chip division in recent quarters. However, the company added that it expected these declines to be offset by growth in other markets.
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