Economy•29 Aug ’24 05:54•Modified on 29 Aug ’24 08:36Authors: ANP and Mark van Harreveld
Nvidia has once again significantly increased its turnover and profit in the past quarter, exceeding the expectations of experts. The company is known as the main seller of chips that support new applications of artificial intelligence (AI). ‘The figures were simply very good’, says stock analyst Jean-Paul van Oudheusden.
AI chip company Nvidia again outperforms expectations
5 min 59 secThe financial markets had been eagerly awaiting Nvidia’s results for days and expectations were high. (ANP / Associated Press)
Revenue for the months of May, June and July was 30 billion dollars. That is more than double compared to the same period last year and also more than the revenue for the first quarter. The revenue from the sale of processors for data centers, on which new AI systems rely for their computing power, rose the fastest. This division accounted for more than 26 billion dollars of the total revenue.
The bottom line was a profit of 16.6 billion dollars, an amount more than one and a half times higher than in the second quarter of the previous financial year. ‘They are developing very hard. The current Hopper chips are good, but new series are coming’, says Van Oudheusden.
High expectations
The financial markets had been eagerly awaiting Nvidia’s results for days and expectations were high. The American Nvidia is the world’s leading supplier of AI chips and the main driver of the rally in the chip and tech sector on the stock exchanges this year. The figures provide insight into the extent to which the AI boom still has momentum.
“They just perform very well”
Jean-Paul van Oudheusden, stock market analyst
For the next quarter, Nvidia expects a turnover of around 32.5 billion dollars. That amount is higher than the 31.9 billion dollars that analysts had expected on average. Some experts, however, expected more, with estimates going as high as 37.9 billion dollars. Investors reacted to that and the share went down in after-hours trading in New York after a brief recovery. ‘They are selling a lot’, says Van Oudheusden about the current generation of chips, ‘how are they really going to be applied? That will have to be clear to see whether they can maintain this level.’
Nvidia started out as a developer of graphics cards for the gaming industry. These processors need a lot of computing power for realistic effects. After adjustments, Nvidia made these chips suitable for other applications, which then provided a solution for processing large amounts of data in self-learning AI systems. Nvidia’s gaming division now has a smaller role within the company and was good for a turnover of 2.9 billion dollars in the past quarter.
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