NVIDIA recently announced its fiscal first-quarter results, reporting record quarterly revenue of $26 billion, surpassing analyst expectations. The significant increase of over 260% from the previous year demonstrates the continued strong demand for NVIDIA’s chips, primarily utilized in powering artificial intelligence technology.
Moreover, NVIDIA provided a strong forecast for the future, stating that second-quarter revenue is expected to reach approximately $28 billion, exceeding projections. This positive news resulted in NVIDIA shares surpassing $1,000 in late trading for the first time, with the stock showing a growth of over 200% in the past year.
Despite the anticipation for the launch of Blackwell, NVIDIA’s upcoming GPU chip later this year, sales of its H100 chip remain robust. The company also revealed that demand for its H200 and Blackwell chips is significantly ahead of supply, as they aim for global availability of the latter by the end of the year.
NVIDIA’s Chief Financial Officer, Colette Kress, mentioned on an investor call that demand is expected to exceed supply well into the next year. CEO Jensen Huang expressed confidence in generating substantial revenue from Blackwell in the current year.
In addition, NVIDIA announced a 150% increase in its quarterly dividend, from four to 10 cents per share, along with a 10-for-1 stock split set to commence next month. Analysts, such as Jacob Bourne from Emarketer, highlighted NVIDIA’s resilience in the market, emphasizing the company’s importance to global AI companies relying on its chips, networking hardware, and software ecosystem.
While some tech giants have announced plans to develop their own chips to enhance their AI offerings, many companies still heavily rely on NVIDIA. Google, for instance, is working on its Arm-based system CPU processor, Axion, while Microsoft is also exploring AI chip development. However, the consistent praise of NVIDIA by tech companies indicates their continued dependence on the chipmaker.
Bourne noted that NVIDIA’s dominance in the industry is evident, with competitors acknowledging the challenge of reducing their reliance on the company. He anticipated bold innovations from NVIDIA to maintain its leading position in the market for the foreseeable future.
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https://www.businessinsider.com/nvidia-beats-estimates-says-chip-demand-ahead-of-supply-2024-5
