quarterly figures
Chip company Nvidia clearly exceeds expectations
The Nvidia office building in Santa Clara. photo
© Jeff Chiu/AP
With the AI boom, the company is making big profits and exceeding analysts’ expectations. The forecasts also show a further significant increase in sales.
The AI boom is leaving the business of chip group Nvidia to grow explosively. The Silicon Valley company doubled its sales year-on-year to $13.5 billion last quarter. Profits jumped from $656 million a year ago to almost $6.2 billion (5.7 billion euros), as Nvidia announced after the US stock market closed.
Chips and software from Nvidia are particularly well suited for applications based on artificial intelligence. This has been driving demand for it – and Nvidia’s share price – for months.
In after-hours trading, the Nvidia share rose by around nine percent at times. The company exceeded analysts’ expectations both with the figures for the past quarter and with the forecast for the third business quarter running until the end of October. Nvidia expects a further increase in sales to around 16 billion dollars.
There was a particularly large jump in the last quarter in the business with technology for data centers. Revenue for the division rose 171 percent year-on-year to $10.32 billion. Many AI applications are running in data centers and the systems are therefore being upgraded with more and more Nvidia chips. The gaming business with Nvidia graphics cards grew by 22 percent to $2.49 billion.