Nvidia Experiences Surge in Revenues Amid Global AI Tech Demand, Outpaces Tesla in Trading
Summary:
Nvidia reports a 265% year-on-year revenue increase due to growing demand for AI equipment, with $22.1 billion recorded in Q4. The GPU manufacturer outpaced Tesla as Wall Street's most-traded stock, moving about $30 billion worth of shares in the last 30 trading sessions. CEO Jensen Huang attributed the growth to increased requirements for accelerated computing and generative AI. In 2024, Tesla plans to spend over $500 million on AI hardware from Nvidia.
Renowned tech titan Nvidia, famed for its ground-breaking graphics processing units (GPUs), recently disclosed a massive 265% spike in revenue year-over-year, fueled by the burgeoning global appetite for artificial intelligence (AI) tech. Current fiscal results for the fourth quarter reveal that Nvidia garnered a hefty $22.1 billion in revenue, a 22% leap from the previous quarter and a remarkable 265% surge from this period last year. Nvidia's CEO and founder, Jensen Huang, asserts that the substantial boost in sales is largely due to the global increase in demand for accelerated computing and generative AI. Currently, Nvidia is valued at a whopping $1.67 trillion in market capitalization.
Interestingly, Nvidia has somewhat dethroned Elon Musk's Tesla by becoming the most-frequently traded stock on Wall Street. Recent data indicates that Nvidia's shares valued around $30 billion traded hands over the past 30 trading sessions, compared to Tesla's average of about $22 billion in the same duration.
Earlier on January 27, Musk confirmed Tesla's intentions to spend over a hefty $500 million purchasing AI hardware from Nvidia in this year alone. He argued that at this point, the minimum expenditure for maintaining a competitive stance in the AI market would be several billion dollars annually. Evidently, Tesla also has plans to secure AI-related hardware from Nvidia's prime competitor in GPU manufacturing, AMD.
The Nvidia RTX series, launched initially in September 2018, has rapidly become the preferred platform for generative AI enthusiasts, as well as gamers and creators. Nvidia's third-quarter revenue in 2023 soared to $18.1 billion, backed up by a robust $1.2 trillion market cap.
Meanwhile, Yann LeCun, the foremost AI scientist for Facebook AI Research (FAIR) for Meta, recently recognized Nvidia's unrivaled command over the AI hardware sector in December 2023. He added that Nvidia is effectively fueling the AI battleground. However, LeCun expressed skepticism regarding the extensive utilization of text-based models for training generative AI systems. He pointed out the inherent limitations of text as a source of information, arguing that even after substantial training, these systems fail to grasp fundamental concepts.
Published At
2/22/2024 8:41:36 AM
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