The company has reported record quarterly results while its market value has tripled over the past twelve months.
It brought in $26bn in revenue in the first quarter, which was an 18% increase from Q4 and up a whopping 262% from a year ago. Net profit was $14.88bn, up from $2bn a year before. That revenue figure beat expectations with investors forecasting revenues of $24.6bn.
As one analyst said, "Death, taxes, and NVDA beats on earnings. Even in the face of huge expectations, the company once again stepped up and delivered."
Speaking to analysts the company’s CEO, Jensen Huang, said, “The next industrial revolution has begun – companies and countries are partnering with Nvidia … to produce a new commodity: artificial intelligence.”
The spending by big tech on Nvidia’s chips continues at an impressive rate, but with companies becoming increasingly reliant on Nvidia’s AI chips, networking hardware and its software ecosystem there is a sense that many big players know that they will have to reduce their reliance on Nvidia.
Companies like Amazon, Google, Meta and Microsoft all have plans to spend big on chips and data centres that will be needed to train and operate their AI systems. Even Apple, who have been somewhat late to the table, is set to reveal its AI strategy next month.
The continuing success of Nvidia has seen its value surge from $359bn in 2022 to a massive $2.33tn today.
Still behind the likes of Apple and Microsoft but surely it’s just a matter of time before it supplants them, especially if it continues to impress with this level of growth.
But there are a few clouds. Will Nvidia be able to keep up with demand and how will the US administration’s decision to prevent it from selling its highest-end semiconductors in China play out, going forward?
In the great scheme of things these are not insurmountable and for many the AI party has only just started.
