-- Nvidia Corp., the chipmaker at the center of an artificial intelligence boom, gained in late trading after a bullish sales forecast showed that AI computing spending remains strong.Second-quarter revenue will be about $28 billion, the company said Wednesday, topping the $26.8 billion predicted by analysts. Results in the fiscal first quarter, which ended April 28, also beat projections — lifted by growth in Nvidia’s data-center division.
In the fiscal first quarter, Nvidia’s revenue more than tripled to $26 billion. Excluding certain items, profit was $6.12 a share. Analysts had predicted sales of about $24.7 billion and earnings of $5.65 a share. The release of OpenAI’s ChatGPT chatbot in 2022 then sparked a race between major technology companies to build their own AI infrastructure. The scramble made Nvidia’s H100 accelerators a must-have product. They sell for tens of thousands of dollars per chip and are often in scarce supply.
If the after-hours stock gain holds up in regular trading on Thursday, Nvidia will add roughly $140 billion to its valuation. That’s greater than the entire market capitalization of Intel Corp., a chipmaker that once dwarfed Nvidia by every measure. And Nvidia’s $28 billion in projected quarterly sales would be more than twice what Intel is expected to report.
The large-scale deployment of Nvidia chips by Elon Musk’s Tesla Inc. is one sign of that expansion. The automaker is using Nvidia gear to develop software that will operate self-driving vehicles. The company will get “a lot” of its 2024 revenue from the new Blackwell chips, Huang said. But customers aren’t easing up on orders for its existing products — a concern among some analysts. Those buyers need the current generation to help them build out their infrastructure as quickly as possible, he said.
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