Nvidia announced that its profits rose to $12.3 billion in the fourth quarter thanks to record revenues driven by demand for its chips to operate artificial intelligence systems.
The Silicon Valley chip giant posted record revenue of $22.1 billion in the quarter that ended in late January, and record revenue of $60.9 billion for the fiscal year.
“Accelerated computing and generative artificial intelligence have reached a turning point,” NVIDIA CEO Jensen Huang said in a statement.
“Demand is increasing around the world across companies, industries and countries,” he added.
The company’s revenues from its unit specializing in data center computing reached a record level of $18.4 billion in the past quarter, more than four times the revenues of the same period of the previous year.
Nvidia said it expects its total revenues to reach $24 billion in the current quarter.
The company’s chief financial officer, Colette Kress, had previously warned analysts that new US export control regulations targeting China and other markets, including Vietnam and parts of the Middle East, are expected to negatively impact sales of data center chips.
The United States announced late last year that it would tighten restrictions on exports of advanced artificial intelligence chips to China.
Calls for tightening restrictions increased after the world discovered the capabilities of artificial intelligence with the launch of “ChatGPT”, a tool whose first version appeared in November 2022.
Also raising concern in Washington was the news that the Chinese company Huawei launched a new smartphone equipped with an advanced, locally made chip.
In announcing the strengthening of restrictions, US officials stressed their intention to close loopholes and prevent China from developing artificial intelligence for military use.
Following that announcement, China said it was “deeply dissatisfied” and “strongly opposed” to the restrictions.
2024-02-22 04:31:22
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