- Nvidia’s quarterly revenue triples, surpassing expectations and driving shares up by 10%.
- Demand for Nvidia’s data center chips and GPUs continues to rise, with strong sales projections.
- Despite concerns about sustainability and supply chain strains, Nvidia remains a dominant force in the AI chip market, propelling market surges and rivaling tech giants in value.
Nvidia, a big company that makes computer chips for things like artificial intelligence (AI) and graphics, has said that its sales are going to be much higher than people thought. This news made their shares go up by 10 percent when the stock market closed, which is good for them.
The demand for Nvidia’s chips, especially the ones used in data centers and for making graphics, is growing fast. Companies want to use more AI, so they need these chips. Nvidia is the biggest company in the world for making these kinds of chips, and big companies like Microsoft buy a lot from them.
You May Like: Vibhor Steel Tubes IPO Skyrockets by 181.5% on Debut – Breaking Records!
Nvidia has been doing better than people expected for the last three quarters of 2023. They made more money than analysts thought they would, sometimes even 10-20 percent more.
Now, they’re saying that in the first part of 2024, they’ll make 233 percent more money than before. People on Wall Street, who predict how companies will do, thought it would only be 208 percent more.
Because of this good news, Nvidia’s value as a company went up by $129 billion. That’s a lot! Other companies that do similar things, like Arm Holdings, also saw their value go up by $160 billion altogether.
But some people aren’t sure if Nvidia can keep growing so fast. They wonder if this big growth can continue. Nvidia thinks they’ll make about $24.0 billion in the first part of 2024. That’s more than what most people who guess these things expected.
You May Like: Gujarat Gas Shows Promise Amid Q3 Setback and Global LNG Shift
Most of Nvidia’s money comes from selling chips for data centers. In the last part of 2023, they made $18.4 billion from this. That’s a lot more than what experts thought they would make. But some people worry if Nvidia can make enough chips to meet the big demand.
Nvidia’s chips come from factories, mostly in Taiwan. These factories are making more chips now, which should help. But it might take some time before there are enough chips for everyone who wants them.
Even though Nvidia is doing well, they’re also facing some problems. Some countries are asking questions about how Nvidia sells its chips. They’re worried it might not be fair. Also, the U.S. government is talking with Nvidia about how they sell their chips to China. Nvidia says they’ll follow the rules set by the government.
Because Nvidia is doing so well, it’s making the stock market go up too. Other companies that do similar things, like Advanced Micro Devices Inc. and Intel Corp., also saw their shares go up. Even companies that helped Nvidia make their chips, like SK Hynix Inc. and Advantest Corp., saw their value go up.
Experts think Nvidia will keep doing well because there’s a lot of demand for their chips. One expert said Nvidia has been the main reason the stock market has been doing well for almost a year now.
Another expert said that with the way things are going, Nvidia will keep growing and be a big player in the AI world.
So far in 2024, Nvidia’s shares have gone up by more than 30 percent. That means they’re getting close to being as valuable as big companies like Amazon and Alphabet, which owns Google.