Nobody is currently riding the wave of artificial intelligence as successfully as Nvidia. The US chip manufacturer is rushing from record to record – both in terms of business figures and stock market prices. SRF business editor Niklaus Rigert assesses Nvidia’s new quarterly figures and says what the company’s recipe for success is.
Has Nvidia been able to exceed expectations again?
Yes, Nvidia has indeed exceeded expectations again. The company has been growing strongly in recent years and this trend is currently continuing unabated. Sales in the first three months of this year amounted to 26 billion US dollars and profits are almost 15 billion. Two years ago, profits were 2 billion. That is a very strong increase.
What is the secret of Nvidia’s success?
In the 1990s, Nvidia began developing powerful computer chips in California. This was primarily for video games, i.e. for complex 3D graphics. However, it then became increasingly clear that such chips could also be used in other areas, such as in science. For example, Nvidia chips were used to calculate earthquake simulations. As early as 2013, Nvidia began to show an interest in artificial intelligence and to develop corresponding chips. The early entry into this field is now paying off.
Which companies could compete with Nvidia in the future?
The major American technology companies are currently dependent on Nvidia chips for their data centers. In order to reduce this dependency, Google, Amazon and Meta themselves are investing in the development of AI chips. This could become a problem for Nvidia in the medium term. At the moment, Nvidia is ahead in this area.
Why can Nvidia currently benefit so much from the AI boom?
Nvidia recognized the potential of AI early on – long before ChatGPT existed. Over ten years ago, the company began investing heavily in the development of AI chips, giving it a comfortable lead over the competition. Currently, no provider of AI applications can get around Nvidia, and this is obviously paying off greatly for the company.