Tech giant Nvidia claims that its sales have broken a record, more than doubling due to the increased demand for its artificial intelligence (AI) chips. Today, all the news is about Nvidia.
The company claims that its revenues exceeded $13.5 billion in the second quarter of 2023. Nvidia also expects sales to continue increasing this quarter and plans to repurchase $25 billion of its own shares.
Nvidia also stated that it anticipates revenues of around $16 billion in the remaining three months until the end of September.
This figure is well above Wall Street’s expectations and would equate to an increase of around 170% compared to the same period last year.
“A new era of computing has begun,” stated Jensen Huang, CEO of Nvidia. “Companies worldwide are shifting from general-purpose computing to accelerated computing and generative AI,” he added.
The business revolves around chips dedicated to AI
The revenue from this unit reached over $10.3 billion, a 170% increase from a year ago, thanks to cloud computing providers and major internet companies acquiring their next-generation processors.
This year, Nvidia’s market value has soared to over a trillion dollars, with its stock more than tripling in value. This makes it the fifth US publicly traded company to enter the “trillion-dollar club,” joining Apple, Microsoft, Alphabet, and Amazon.
Initially, Nvidia was known for manufacturing the type of computer chips that process graphics, primarily for computer gaming. We all know Nvidia for its GeForce graphics cards.
Now, their hardware forms the foundation of most AI applications, and according to a report, they’ve captured 95% of the machine learning market.
ChatGPT, which generates human-like responses to user queries in a matter of seconds, was trained using 10,000 Nvidia graphics processing units clustered in a Microsoft supercomputer.
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