Nvidia Hits Record $26bn Revenue, Amps Up AI Focus; New Chips to be Unveiled Annually
Summary:
Nvidia, the leading semiconductor company, has posted its highest-ever quarterly revenues of $26 billion, leading to a market cap exceeding $2.5 trillion. The surge in revenues, driven by growth in data center revenue, has led Nvidia to intensify its focus on AI innovations. The company also announced an annual production plan for the next series of AI chips, an all-new approach considering Nvidia's history of unveiling a new microchip architecture every two years. Additionally, boosted collaborations with renowned tech giants like Google Cloud, AWS, Microsoft, and Oracle are underway for advancing AI innovation. Nvidia maintains its dedication to push the envelope in AI utilization in fields like autonomous vehicles, robotics, and healthcare.
Nvidia, the global leader in semiconductors, is not slowing down on its AI endeavors, having posted record high first quarter revenues of $26 billion. The corporation announced its Q1 earnings on May 22, showing an 18% rise compared to last quarter and a whopping 262% growth from same time last year, outpacing the projected $24.6 billion. Subsequently, Nvidia's shares skyrocketed to unprecedented heights, exceeding $1,000 in after-hours trading and boosting its overall valuation to over $2.5 trillion. This capitalization dwarfs the combined market caps of Tesla and Amazon, doubles that of Bitcoin, and is over five times more than that of Ether. Nvidia's market cap has grown exponentially from the $100 billion mark five years ago, placing it as the third biggest public company globally and just 17% shy of overtaking Apple.
Data from MarketWatch showed that the driving force behind the company's growth was the $22.6 billion revenue garnered from its data centers. Consequently, Nvidia is preparing for its next growth phase. Jensen Huang, Nvidia's founder and CEO, affirmed that the transformation to distinct data center types, referred to as AI factories, marks the onset of the next industrial revolution. These factories are poised to produce AI, the emerging commodity. He announced that production of the Blackwell platform, specially designed for "trillion-parameter-scale generative AI" supercomputing, is underway. Furthermore, the company will now unveil new AI chips every year, a departure from its past tradition of launching a new microchip architecture every two years.
Nvidia also highlighted its expanded partnerships with Amazon Web Services (AWS), Google Cloud, Microsoft, and Oracle in fostering AI innovation. New AI performance enhancements and integrations for Microsoft Windows have been made known, designed explicitly for Nvidia GeForce graphics cards and PCs. Additionally, Nvidia has launched new AI gaming technologies, Nvidia ACE and Neural Graphics, and has hinted at investigating other AI applications in gaming. However, the company's gaming revenue for the first quarter was $2.6 billion, reflecting an 8% dip from the prior quarter. Nevertheless, Nvidia remains committed to exploring and expanding AI applications, particularly in autonomous vehicles, robotics, healthcare, and semiconductor manufacturing.
Published At
5/23/2024 6:48:34 AM
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