The whole world is talking and investing in artificial intelligence. The big winner of the case is once again Nvidia, whose chips are used in the computing centers of the tech giants.
We had known for several months that Nvidia was the big beneficiary of the boom in artificial intelligence, but we did not know how much. The giant of PC graphics cards has been relying on artificial intelligence and capable chips in servers with high computing power for several years. Investments in AI include improving these calculation servers and therefore very juicy orders from Nvidia. The firm thus became the first in the world in the semiconductor industry to pass the bar of 1,000 billion dollars in stock market valuation. The firm today unveils the results of its finances, and the least we can say is that the company is doing well.
double the income
In the headline, the doubling of the group’s turnover, which rose to 13.5 billion dollars for this 2nd quarter of the 2024 fiscal year alone. This represents a net profit of 6.2 billion dollars, an increase 843% in one year! Of these 13.5 billion in turnover, the server market (thus that of AI) represents 10.32 billion dollars. We can see how gaming graphics cards are only a small portion of Nvidia’s business.
The firm does not intend to stop there and wants to increase this total turnover to 16 billion dollars in its next quarter. In other words, Nvidia believes that AI should still experience great growth in the coming months. Nvidia recently unveiled the outsized GH200 chip, purpose-built to run software like ChatGPT in data centers. It is scheduled for the year 2024 and should ensure a certain sustainability for the firm.
However, it should be remembered that the competition is preparing to fight back. We are not necessarily talking about Intel and AMD, which are behind on this subject, but about the AI players themselves. Microsoft would, for example, be developing its own dedicated AI chips for its data centers. As Nvidia’s results show, the market can be very juicy and tech players could save a lot of money if they manage to do without the services of Jensen Huang’s company. Of course, all of this will be true if and only if market interest in generative AI doesn’t disappear as quickly as the metaverse and cryptocurrencies.
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