Nvidia has reported a significant increase in profit, driven by strong sales of its artificial intelligence (AI) chips. The company’s revenue jumped 94% from the same period last year, and its profit increased 106%. Nvidia’s dominant position in the market for AI chips is expected to continue, with projected sales for the current quarter rising 70% to $37.5 billion.
The company’s success has raised questions about how long its run can last, but its latest results suggest that it will remain a major player in the rapidly growing AI industry. Nvidia’s AI chips are being used to power applications such as chatbots, software code generation, and drug discovery.
Nvidia’s chief executive, Jensen Huang, has become one of the biggest proponents of AI, predicting that its economic impact will be similar to the Industrial Revolution. The company is investing heavily in building data centers and encouraging other countries to invest in AI research.
Despite some challenges, including supply constraints on its new chip, Nvidia’s results are a vote of confidence in the growing demand for AI technology. The company has committed to updating its GPU line annually and will support any regulatory actions taken by the incoming Trump administration. With its strong financial performance and continued investment in AI research, Nvidia is well-positioned for long-term success.
Source: https://www.nytimes.com/2024/11/20/technology/nvidia-earnings-chips-ai.html