Nvidia announced record-breaking quarterly revenue driven by the growing demand for artificial intelligence in the corporate sector. The company’s CEO, Jensen Huang, highlighted the beginning of a new industrial revolution centered around AI technology. Nvidia generated $26 billion in revenue for the first quarter of fiscal 2025, marking an 18% increase from the previous quarter and a significant 262% surge compared to the same period last year. Net profit also soared to $14.88 billion, up from $2 billion in the previous year.
The company’s earnings per share reached $5.98, up 21% from the previous quarter and a staggering 629% increase from a year ago. Wall Street analysts had expected lower revenue and earnings per share figures, making Nvidia’s performance even more impressive. In addition, Nvidia announced a share split, further boosting investor confidence in the company.
Major tech companies like Amazon, Google, Meta, and Microsoft have pledged to invest heavily in AI infrastructure, with a projected spending of $200 billion this year. Apple is also gearing up to unveil its AI strategy soon. Nvidia is seen as a leading supplier of chips crucial for powering AI systems, positioning the company as a key player in the AI market.
Nvidia’s market value has skyrocketed to over $1.1 trillion in 2024, making it one of the most valuable companies globally. The company’s earnings announcement has become a significant event in the financial world, reflecting the growing importance of AI technology. Despite its impressive performance, analysts warn that Nvidia’s stock price may not continue to rise indefinitely, given its high price-to-earnings ratio.
The demand for Nvidia’s chips is so high that deliveries are being made in armored vehicles. However, concerns about the company’s ability to meet this skyrocketing demand persist. Additionally, regulatory challenges, such as restrictions on selling high-end semiconductors in China, may impact Nvidia’s growth potential.
Investors are closely watching Nvidia’s next steps, with experts like Dan Ives of Wedbush Securities emphasizing the pivotal role the company plays in the AI revolution. As Nvidia continues to innovate and expand its AI capabilities, its position in the market is expected to strengthen further, shaping the future of artificial intelligence technologies.
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https://www.theguardian.com/technology/article/2024/may/22/nvidia-quarterly-earnings