Graphics card specialist Nvidia published results significantly above expectations on Wednesday, May 24, boosted by the race for artificial intelligence (AI), which ideally positions the group in the months to come. In electronic trading after the closing of the Stock Exchange, the title soared by 26.48%.
The Santa Clara (California) company posted revenue of $7.19 billion in the first quarter of its staggered fiscal year 2024 (started at the end of January), down 13% but well beyond the 6, 52 billion expected by analysts. Even more, Wall Street raised the revenue forecast for the second quarter to $11 billion, which would represent a jump of 64% compared to the same period last year.
“Trillion-dollar data processing infrastructures will transition to accelerated computing as companies use generative AI across all of their products and services,” CEO Jensen said in a statement. Huang, who sees Nvidia benefiting from this upheaval. Accelerated computing makes it possible to multiply processing capacities compared to conventional computers and opens up new possibilities for the use of generative AI. The latter makes it possible to create content without human intervention in response to a request in everyday language, as in the case of the ChatGPT interface.
Nvidia is the world leader in graphics processors (GPU), chips initially intended to improve the creation of images but whose use has been extended due to their very high computing capacity. They have become an indispensable tool in the development of generative artificial intelligence. While several semiconductor makers have recently reported a slowdown in the market, Nvidia plans to increase its supply “to meet skyrocketing demand,” Jensen Huang said.
Nvidia has long relied on the video game industry to thrive, but now data centers are driving its growth. The latter have seen their turnover increase by 14% over one year. Despite a total turnover in contraction over one year, Nvidia managed to increase its net profit by 26%, to 2 billion dollars, mainly due to a favorable accounting base effect.