Nvidia beats market consensus, annual revenue hit $61 billion
Nvidia exceeded market projections for fourth-quarter earnings and revenue on Wednesday and predicted “continued growth” in 2025 and beyond, stocks of artificial intelligence and semiconductor chips surged.
In comparison to the same quarter of the year earlier, the technology giant stated that revenues in the three months ended January 28 increased by 265% to $22 billion. Annual Turnover doubled as it increased to $60.9 billion.
Nvidia reported its gross profit increased by 338% to $16.8 billion during the last three months of its fiscal year. Gross profit for the year increased by 188% to $44.3 billion.
But the business acknowledged that it was up against several obstacles, including limitations on its supply chains. Additionally, the US has strengthened its trade restrictions with China, the second-biggest economy in the world.
During the earnings call on Wednesday, Nvidia CEO Jensen Huang told analysts that “fundamentally, the conditions are excellent for continued growth” in 2025 and beyond. He continued by saying that generative AI and the industry’s move away from central processors and toward Nvidia’s accelerators will keep demand for Nvidia GPUs high.
The AI boom caused Nvidia, which creates specialized AI chips for companies like Google, Microsoft, and Amazon, to see a sharp increase in demand for its graphics processing units.
Thousands of Nvidia GPUs are used to train and operate OpenAI’s ChatGPT, which shot to global fame in November 2022 thanks to its capacity to produce responses to user requests that resemble those of a human. Extended trading saw a 9% increase in Nvidia shares.
Taiwan Semiconductor Manufacturing Company, a supplier to Nvidia, saw a surge of up to 2.05% in Thursday morning trading. The largest contract chip manufacturer in the world, TSMC creates cutting-edge processors for businesses like Nvidia and Apple, the producer of the iPhone.
The stock prices of its peers, which include Intel, Broadcom, and Qualcomm, increased during Wednesday’s extended trading, rising 2%, 3%, and 1.4%, respectively.
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