The company’s specialized AI chips are in great demand, boosting its value to over $1tn, a first for a chipmaker
The chipmaker Nvidia has far surpassed quarterly expectations, raking in $13.5bn in revenue – over $2bn more than the $11.2bn Wall Street analysts had predicted – amid skyrocketing demand for its computer chips that power artificial intelligence systems.
The blockbuster second quarter comes at a moment of intense hype around generative AI, a mood that Nvidia has been uniquely positioned to capture. The 30-year-old company is one of the biggest winners in the AI boom and is now valued at over $1tn, with its chips powering nearly all the world’s major artificial intelligence apps, including ChatGPT.
rather than solely investing in angling for market share in spaces with existing demands, such as data centers. Generative AI systems require enormous computational power, which in turn requires specialized chips that can perform specific tasks and calculations. The high demand has caused a shortage of these chips, and the supply that does exist has been bought up by a few major entities and countries, including Saudi Arabia and the United Arab Emirates,That shortage has been a boon for Nvidia.
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia, in a press release about the second quarter earnings.
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