There is no doubt that Nvidia will become more and more important in the future, given that the company has simply broken a big record. You haven’t heard the last of it.
So, Nvidia made Wall Street history by adding $277 billion to its stock market value, following the publication of a quarterly report that surpassed expectations. The one-day gain is the largest ever on Wall Street, surpassing Meta Platforms’ previous record.
Nvidia is doing very well
Demand for Nvidia’s specialized chips, used in AI computing, continued to exceed analysts’ high expectations. The Silicon Valley firm thus anticipated revenue growth for the current quarter of 233%, beyond market expectations. Nvidia, which controls about 80% of the high-end AI chip market, saw its fourth-quarter revenue more than triple from a year earlier, reaching $22.10 billion. It’s simply huge.
However, some concerns remain about the impact of U.S. restrictions on chip sales in China on Nvidia’s revenue growth. Sales in China accounted for about 9% of Nvidia’s fourth-quarter sales, up from 22% in the previous quarter. It is therefore possible that the results will still be a little less good next year and for the rest of the year. However, with the continued growth of AI and the rise in sales of electric cars, the manufacturer still has very good years ahead of it. Enough to drink Champagne several times a year.
In the gaming market, Nvidia still dominates and the company should take advantage of the year 2024 to launch its famous RTX 5000 generation (yes, already), with surely another new technological gap on the program. A new opportunity to boost sales and increase turnover. Hoping that no shortage will spoil the party.
What do you think of Nvidia’s rise?