BNR – Global technology leader Nvidia has announced a remarkable achievement with its sales reaching a historic high. The company reached two times sales because of the increasing demand for its AI chips.
Additionally, the financial report for the three months (ending in June) shows a revenue hike, exceeding an impressive $13.5 billion.
Data Centre Division Boosts Revenue
The exponential growth of Nvidia’s data centre division primarily drove its remarkable financial performance. This division contributed significantly to the company’s revenue, marking a remarkable growth of over 170% compared to the previous year.
The surge in demand was attributed to cloud computing service providers and prominent consumer internet firms eagerly adopting Nvidia’s processors.
Nvidia’s Chief Executive, Jensen Huang, expressed his optimism about the company’s trajectory. He stated that “a new computing era has begun,” elaborating on the global shift from conventional to accelerated computing.
The market response to Nvidia’s impressive performance has been overwhelmingly positive. The company’s shares experienced a surge of more than 6.5% during extended trading on the New York Stock Exchange. This further bolstered the company’s remarkable gains achieved over the course of this year.
Positive Market Response as Nvidia Joins the Trillion-Dollar Club
Anticipating continued growth, Nvidia has projected its revenue to reach approximately $16 billion in the upcoming three months. This forecast surpasses Wall Street predictions and would translate to a substantial 170% increase compared to the previous year.
Nvidia’s increasing prominence in technology has resulted in the market surging to over the $1 trillion mark this year. This valuation places Nvidia among the exclusive ranks of publicly traded US companies known as the “Trillion-dollar club”. The club is a group that includes tech giants like Apple, Microsoft, Alphabet, and Amazon.
As Nvidia’s reach continues to expand, the company’s AI-driven hardware has become foundational for various AI applications. Its contributions extend across diverse sectors, including its involvement in training the advanced ChatGPT model.
