Nvidia is the big winner of the generative artificial intelligence boom. Its powerful microprocessors are indispensable for the cloud computing burden that new technology requires. His accounts reflect it more and more clearly. The income of the technology company based in Santa Clara (California) doubled in the second quarter of its fiscal year, ended on July 30, compared to the same period of the previous year, as reported this Wednesday at the close of the market. to the United States Securities and Exchange Commission (SEC).
Nvidia achieved revenues of 13,510 million dollars (about 12,440 million euros at current exchange rates) in the second quarter of the year, 101% more than in the same period a year ago and 88% more than in the quarter former.
Profits shot up even more, up to $6.188 billion, an increase of 843% over a year ago and triple that of the first quarter. the figures exceed the already optimistic forecasts of analysts.
“A new computing age has begun. Enterprises around the world are shifting from general-purpose computing to accelerated computing and generative AI,” Jensen Huang, founder and CEO of Nvidia, said in a statement. The brilliant success of ChatGPT, from OpenAI, has demonstrated the capacity of the new technology and has caused orders to bet on it to skyrocket.
“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading vendors of enterprise IT software and systems announced partnerships to bring NVIDIA AI to every industry. The race to adopt generative AI is on”, he added.
During the quarter, Nvidia returned $3.38 billion to shareholders in the form of 7.5 million share repurchases for $3.28 billion and cash dividends. At the end of the second quarter, the company had $3.95 billion remaining within its share repurchase authorization. On August 21, 2023, the board of directors approved an additional $25 billion share repurchase, with no expiration date.
Nvidia has entered the club of companies that are worth more than a trillion dollars this year. The shares of the microprocessor firm have appreciated 229% this year and are moving in the zone of historical maximums. In operations outside of regular market hours, the price shot up by an additional 10% in reaction to the published results.
Nvidia last May presented good results for the first quarter, but above all, some very powerful forecasts for the second that completely surprised the market. Then he announced a revenue forecast of about $11 billion, pulverizing forecasts of $7.15 billion held by analysts on Wall Street. But in the end even that figure has fallen far short compared to reality. The company invoices with very high margins, so that translates into a large increase in profitability.
After the revenue record for the second quarter, another will arrive in the third, according to the company’s forecasts, which estimates sales of around 16,000 million dollars between August and October. Data centers have become the engine of growth, but revenue is also rising in other businesses such as visualization, gaming and self-driving cars.
Founded in California in 1993, Nvidia has pioneered graphics processing for computers and video game consoles. In 1999, Nvidia invented the GPU, the graphics processing unit, which set the stage for profound industry change. To have ever better images, it has exponentially increased the power of its processors, with capabilities for robotics, cloud computing, aerospace, weapons manufacturing, the metaverse, cryptocurrencies, autonomous driving, reconnaissance imaging and artificial intelligence.
Jensen Huang, 60, founded the company with Chris Malachowsky and Curtis Priem, with a vision of bringing 3D graphics to the gaming and multimedia markets. He has run it ever since and has become the head of a large company with the longest track record in all of Silicon Valley. With Nvidia’s appreciation on the stock market, Huang’s fortune has skyrocketed. He owns about 87 million shares of the company (3.5% of the capital), valued at about 44,000 million dollars.
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