Nvidia’s Artificial Intelligence Business Soars, Stock Price Surges by 23% in New York

Artificial intelligence continues to be Nvidia’s business, which does not go unnoticed by operators, on the lookout for any news on the artificial intelligence front. In New York, the action of American tech soared 23% in the first exchanges when it had already doubled since the beginning of the year.

The American graphics card specialist published, after the stock market, a turnover of 7.19 billion dollars for the first quarter of its staggered fiscal year, which began at the end of January. If the latter is down 13% over one year in published data, it came out well beyond the 6.52 billion expected by analysts. The operators reward what they consider to be a good positioning, the company managing to compensate for the loss of speed in its historical segment of video games (-38% over one year, to 2.24 billion).

A windfall of income

Despite a shrinking turnover over one year, Nvidia managed to increase its net profit by 26%, to 2 billion dollars. And it was once again the Data Centers division that drove demand, with $4.28 billion in revenue over the first three months of the fiscal year – against $3.9 billion expected. That is a growth of 14% over one year, in published data. This strong demand, growing according to Nvidia, is explained by the mass adoption of its GPU cards by cloud providers and by designers of generative artificial intelligence applications, like OpenAI’s ChatGPT chatbot. .

« $1 Trillion Data Processing Infrastructures Will Transition to Accelerated Computing as Enterprises Use Generative AI in All Their Products and Services “, underlined in a press release the general manager, Jensen Huang, who sees Nvidia benefiting from this upheaval. The company, the world’s number one GPU, has seen its chips find a use case they weren’t designed for. Originally intended to improve the creation of images, their use has been extended due to their high computing capacity. Note that Nvidia anticipates a turnover of 11 billion dollars for the second quarter.