NVIDIA, a chipmaker heavily involved in the artificial intelligence industry, reported strong earnings for the quarter ended April 28. The company’s revenue increased by 18% compared to the previous quarter and an impressive 262% compared to the same period a year earlier, reaching $26 billion. This exceeded Wall Street expectations, with analyst estimates averaging $24.65 billion.
Investors and analysts closely watched NVIDIA’s earnings release as a gauge for the artificial intelligence industry. CEO Jensen Huang attributed the revenue growth to partnerships with companies and countries transitioning traditional data centers into “AI factories” that generate productivity gains across various industries. Colette Kress, Nvidia’s CFO, explained that AI factories are next-generation data centers housing accelerated computing platforms.
In the first quarter, Nvidia collaborated with over 100 customers to build AI factories with varying sizes, some reaching up to 100,000 GPUs. The company’s data center revenue experienced a significant increase of 23% from the previous quarter and 427% from the same quarter in the previous year.
The momentum in the AI industry is being propelled by demand for generative AI training and inference, according to Huang. He mentioned during the earnings conference call that generative AI is driving a shift in computing platforms that will transform interactions by moving from the current model of information retrieval to a model of generating responses and skills.
Looking ahead, Nvidia projects their revenue for the current quarter to reach $28 billion, continuing the strong growth trajectory. This outlook surpasses Wall Street expectations, even though the growth rate is slightly lower due to more challenging comparisons. Analysts had anticipated the forecast to be around $26.66 billion.
Huang noted that the demand for Nvidia’s products and services exceeds the company’s capacity to meet it, indicating a high level of interest in their offerings. Overall, Nvidia’s performance reflects the ongoing strength and potential in the artificial intelligence industry, as companies and industries continue to embrace AI technologies for efficiency and growth.
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