Nvidia’s sales have hit a record high as demand for its AI chips soars.
The technology titan has revealed its sales have surged to unprecedented heights, more than doubling due to the escalating requirement in the artificial intelligence market, with its revenue soaring above $13.5 billion for the three months ending in June.
The firm’s CEO Jensen Huang said: "A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI."
Nvidia's stock market value this year leapt to more than $1 trillion as its shares more than tripled in value.
It made it the fifth publicly traded US company to join the ‘Trillion dollar club’ – along with Apple, Microsoft, Alphabet and Amazon.
Sarah Kunst, managing director of start-ups investor Cleo Capital, told the BBC she was fixated on the “almost mania" around Nvidia.
She added: “They’ve been making chips for a very long time and it’s only really been in the last couple of years that the market has sort of caught on to this.”
Nvidia anticipates the trend of escalating sales will persist in the current quarter.
It has also unveiled plans to repurchase $25 billion of its own stock.
In the aftermath of that announcement, the company's shares exhibited an impressive surge of more than 6.5 per cent during extended trading hours in New York.
The firm now has a target of around $16 billion for the three-month period ending in September – an aim that far exceeds the expectations of Wall Street analysts, and which would equate to a staggering growth of about 170 per cent compared to the same period in the previous year.
Nvidia's data centre business that features AI chips has reached an impressive $10.3 billion, marking a remarkable surge of more than 170 per cent from the preceding year.
Originally renowned for crafting computer chips that enhance graphics, especially for gaming, Nvidia has now evolved into a linchpin for most AI applications.
ChatGPT was honed utilising the power of 10,000 of Nvidia’s graphics processing units amalgamated in a supercomputer owned by Microsoft.
