NVIDIA is prospering, as evidenced by its stock price, which is experiencing a fairly meteoric rise. The company has the wind at its back, thanks to an enormous demand for its computing chips, which provides it with very comfortable income.
Even if the figures are not everything in estimating the good health of a company, we must admit that the growth rate announced by NVIDIA on Wednesday August 23 is enough to make people jealous. On the financial markets, the company acts like a UFO, as it took off quickly. Her little secret? The global craze for AI. The sector is in turmoil, and the training of artificial intelligence models requires powerful calculation components. That’s good, it’s a bit of NVIDIA’s specialty.
Impressive records
The Californian company and its recent quarterly results serve as an example in the financial sector. While the best analysts were betting instead on an annual turnover of 11.22 billion dollars, NVIDIA reached 13.51 billion. The company therefore doubled its revenues year-on-year!
A jump in the group’s shares necessarily accompanies this increase. In fact, they are skyrocketing. The established forecasts ruled on a profit for each action of 2.07 dollars, but this one is finally of 2.70 dollars. A rather prodigious spray of forecasts. The feat is reminiscent of what happened last May, when the share price jumped 25% for one session.
The main catalyst: AI!
As we know, NVIDIA is one of the two central players in the graphics chip market, and the period is very fruitful for this industry. The field of artificial intelligence is exploding in all sectors, and the demand for these computing components is skyrocketing. This growth requires a very large number of hardware resources, which are used to train the AI models. The result: an unbalanced supply and demand ratio.
The price of some of the company’s chips is skyrocketing, too. The H100 GPU, for example, popular in the AI industry, saw its price increase by 100%. With a unit price of 40,000 dollars, it’s the jackpot for NVIDIA, which still sells it in spades. It is now a fact, the health of the company relies for the most part on the existence and maintenance of data centers, the real pillars that support the dantesque expansion of artificial intelligence.
Industrial paradigms are being shaken up by artificial intelligence, and here is a very clear symptom. However, we must not forget that the field of semiconductors remains under high tension, and the possibility that the flight of NVIDIA will be stopped dead is therefore not to be ruled out. Colette Kress, the company’s chief financial officer, is reassuring and assures that NVIDIA’s performance would not be affected if the restrictions imposed by China were to increase.
Sources: Alex (tired) on X.com, Boursorama, The Echo
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