Technology behemoth Nvidia claims that as demand for its artificial intelligence (AI) processors surges, its revenues have reached a record after more than tripling.

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Nvidia Growth in Market

The corporation reports that for the three months ending in June, revenue increased to almost $13.5 billion (£10.6 billion).

Additionally, Nvidia anticipates even higher sales in the upcoming quarter and intends to repurchase $25 billion worth of its shares.

The company’s shares increased by more than 6.5% in late-night New York trade, adding to their tremendous gains so far this year.

Additionally, The company’s stated that it anticipates sales of around $16 billion for the three months ending in September.

That is substantially greater than what Wall Street anticipated, and it would represent an increase of over 170% from this time last year.

Jensen Huang, the chief executive of The company, declared in a statement that “a new computing era has begun.”

 Nvidia

Businesses all across the globe are switching from general-purpose computing to accelerated computing and generative AI, he continued.

The company’s data center division, which sells AI hardware, was the main driver of the impressive success.

Due to the demand for its next-generation processors from big consumer internet firms and cloud computing service providers, revenue for that segment increased by more than 170% year over year to more over $10 billion.

 Nvidia

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Nvidia’s stock market worth increased by more than $1 trillion this year as the value of its shares more than quadrupled.

Along with Apple, Microsoft, Alphabet, and Amazon, it became the sixth publicly listed US corporation to enter the infamous “Trillion Dollar Club” as a result.

The managing director of Cleo Capital, which finances startups, Sarah Kunst, expressed her fascination with “the almost mania” around Nvidia on the BBC’s Today show.

“They’ve been making chips for a very long time, and the market has only really started to catch on to this in the last couple of years,” she added.

Originally, Nvidia was recognized for producing the kinds of computer chips used to generate images, especially for video games.

Today, its hardware powers the majority of AI applications; according to one study, it has a monopoly on 95% of the machine learning industry.

10,000 Nvidia graphics processing units were grouped together in a Microsoft supercomputer to train ChatGPT, which produces human-like replies to customer inquiries in a matter of seconds.

Artificial intelligence (AI) products are predicted to fundamentally alter how we use computers and how they function in our lives.

WALK DOWN WALL STREET

A Wall Street rise is also being maintained by The company’s news, with futures tracking the tech-heavy Nasdaq 100 rising more than 1% and S&P 500 futures rising 0.5%.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, stated that the news about Nvidia “has a boosting effect on technology stocks, if only by confirming that all the talk around the AI-craze was not empty, after all.”

In premarket trade, shares of AI-related chip companies surged between 2.2% and 4.3%, including Nvidia competitor Advanced Micro Devices (AMD.O), Micron Technology (MU.O), Broadcom (AVGO.O), and Marvell Technology (MRVL.O).

Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW), a supplier to Nvidia, saw a 3.2% increase in its U.S.-listed shares.

Following the results of tech darling Nvidia, shares in Asia and European chip makers increased.

A lot depended on Nvidia’s financial performance because the AI-driven boom in Nvidia and other Big Tech stocks has contributed to the majority of the S&P 500’s nearly 15% year-to-date gains.

According to Thomas Monteiro of Investing.com, Nvidia’s earnings supported “the narrative that has been propping tech stocks in general this year.”

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