Nvidia profits soar on demand for AI power
Nvidia said Wednesday its quarterly net profit rocketed by seven times year-on-year on demand for its chips to power artificial intelligence in data centers.
The California-based company reported a net profit of $14.9 billion, while its revenue of $26 billion was almost four times what it took in during the same fiscal quarter last year.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisitNvidia also announced a 10-for-one stock split effective June 7 to make owning shares more accessible. Nvidia shares were up nearly six percent to $1,003.50 in after-market trades.
«The next industrial revolution has begun,» Nvidia chief executive Jensen Huang said in an earnings release.
«Companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.»
Demand was strong for sophisticated GPUs (graphics processing units) tailored for the demands of training AI models, according to Huang.
In a promising sign, interest in generative AI is expanding beyond cloud computing titans to consumer internet, automotive, and healthcare companies as well as nations seeking to build sovereign AI, Huang said.
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