Nvidia Corp. has announced impressive financial results, with both profits and revenue rising due to the increasing demand for its chips for artificial intelligence applications. The company’s position as a leader in the AI industry was highlighted in the report, confirming its dominance in the market.
Key highlights from Nvidia’s results included a significant increase in profits and revenue, up by 628% and 268% respectively from the previous year. The net income rose to $14.88 billion in the first quarter, with revenue reaching $26.04 billion. The company exceeded expectations during its quarterly results announcement, leading to a surge in Nvidia shares, which surpassed the $1,000 mark for the first time in extended trading.
In addition, Nvidia announced a 10-for-1 stock split, along with a quarterly dividend increase of 150%. Adjusted earnings per share of $6.12 beat Wall Street predictions, leading to a 7% rise in after-hours trading. Nvidia now holds the third-highest market value on Wall Street, trailing behind Microsoft and Apple.
CEO Jensen Huang expressed optimism about the future, stating that the next “industrial revolution” has begun with AI bringing productivity gains to various industries and expanding revenue opportunities. He predicted that companies would utilize Nvidia chips to create “AI factories” and develop advanced AI models capable of reasoning and planning.
Analysts praised Nvidia’s performance, acknowledging its continued success despite efforts by tech giants to reduce their dependence on Nvidia’s AI hardware. Emarketer’s Jacob Bourne remarked, “Nvidia defies gravity again,” emphasizing the company’s resilience in the market.
Overall, Nvidia’s stellar financial results and strong position in the AI industry showcase its ongoing success and innovation, positioning the company as a key player in the technology sector. The company’s focus on AI applications and advancements has fueled its growth, leading to impressive financial performance and market value.
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https://www.livemint.com/companies/company-results/nvidias-profit-jumps-amid-dominance-in-chip-for-ai-key-highlights-11716425733893.html
