Nvidia Says Revenue Has More Than Tripled

AI boom has put company's chips in high demand
By Newser Editors and Wire Services
Posted Feb 21, 2024 5:15 PM CST
Nvidia Says Revenue Has More Than Tripled
A Nvidia office building is shown in Santa Clara, California.   (AP Photo/Jeff Chiu, File)

Nvidia Corp., which has seen its value skyrocket over the past year thanks to soaring demand for its graphics chips used for artificial intelligence, posted stronger-than-expected results Wednesday for its latest quarter, with its revenue more than tripling from a year earlier. Nvidia reported revenue for its fiscal fourth quarter that ended Jan. 28 of $22.1 billion, up from $6.05 billion. Revenue was up 265% overall year-on-year and revenue from data centers was up 400%, per the Guardian. The California-based company earned $12.29 billion, compared to a profit of $1.41 billion a year ago, the AP reports. Analysts had expected revenue of $20.4 billion for the period that concluded the company's fiscal year.

The company's specialized chips are key components that help power different forms of artificial intelligence, including the latest generative AI chatbots such as ChatGPT and Google's Gemini. "Accelerated computing and generative AI have hit the tipping point," said Jensen Huang, founder and CEO of Nvidia, in a statement. "Demand is surging worldwide across companies, industries, and nations." Nvidia carved out an early lead in the hardware and software needed to tailor its technology to AI applications, partly because Huang began to nudge the company into what was then seen as a still half-baked technology more than a decade ago. It also makes chips for gaming and cars.

For the current quarter, Nvidia expects revenue of about $24 billion. Analysts are currently expecting Nvidia to post revenue of $22.2 billion for the February-April period. Nvidia relies heavily on the world's biggest maker of computer chips, the Taiwan Semiconductor Manufacturing Company, to churn out the chips that Nvidia designs. Taiwan's Taiex benchmark index last week jumped 3% to a record high, buoyed by a surge in TSMC's share price. Nvidia's shares jumped 10% to $743 in after-hours trading.

(More Nvidia stories.)

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