Computer chip maker Nvidia considerably beat expectations for quarterly revenue with $13.5 billion, which was $2 billion more than Wall Street analysts had predicted. In addition, the company's profit increased almost 9.5 times.
Nvidia was able to achieve these indicators amid high demand for computer chips used in the field of artificial intelligence (AI), The Guardian reported.
The company’s net profit increased almost 9.5 times year-over-year to $6.19 billion, operating profit increased 13.6 times to $6.8 billion, and operating expenses increased only 10% to $2 67 billion.
Nvidia, which has been in the market for 30 years and whose market value exceeded $1 trillion for the first time, is one of the companies that has taken advantage of the widespread use of AI. The company's chips are used in nearly every major AI app in the world, including ChatGPT.
Unlike some of its competitors such as Intel, Micron Technologies, and Advance Micro Devices (AMD), Nvidia has devoted most of its investment and effort to developing chips that power AI systems, rather than investing exclusively in to gain market share in space industry. We are talking, for example, about chips for data processing centers.
Generative AI systems require massive computing power, which in turn requires specialized chips that can perform specific tasks and calculations. According to the Financial Times, high demand has created a shortage in the market of those chips as the existing ones have been bought by several major organizations and countries, including Saudi Arabia and the United Arab Emirates.
That very deficit has been favorable to Nvidia. Few companies have as much experience in developing these specialized chips as this Santa Clara, California-based company, which started its activities in 1993 as a computer chip maker for video games.