Tuesday, May 30, 2023

Nvidia shares market share: exceed expectations with AI chips

NVIDIA Corp, the world’s leading artificial intelligence maker, released a second-quarter earnings forecast that topped Wall Street estimates by 10%, sending its shares soaring more than 24% after the close.

The company is expanding its offering to meet the growing demand for its chips, which provide the power of ChatGPT services and other similar services. This growth has helped the company become the world’s most valuable semiconductor company, with Nvidia shares climbing as much as 28% and hitting an all-time high of $391.50.

Strong growth in artificial intelligence has helped Nvidia become the fifth most valuable company in the US market. Despite the difficulties assembling its AI stack, Nvidia CEO Jensen Huang said the company will significantly increase the supply. According to analysts, Nvidia has shifted some of its supply chain capacity away from the PC gaming market to its data center AI chips. While its PC game chips sell for $1,500, its AI chips cost more than a million, around $20,000 each.

Nvidia’s current revenue is $11 billion, plus or minus 2% of forecasts, while analysts expect Refinitiv’s revenue to be $7.15 billion. Given the onslaught of generative AI gold, this should boost demand for the rest of the year on Nvidia chips.

In addition, Nvidia’s CFO, Colette Kress, stated that the company had achieved “substantially greater supply” for the second half of the year. Adjusted revenue for the quarter ended April 30 was $7.19 billion, beating analyst expectations of $6.52 billion in revenue. Sales of the data center company reached $4.28 billion, beating analyst estimates of $3.89 billion.

In summary, Nvidia provided a second quarter revenue forecast that was higher than Wall Street estimates due to growth in demand for its artificial intelligence. Despite the difficulties in assembling its AI chips, the company is significantly increasing its supply and has achieved a substantially higher supply for the second half of the year. AI has helped Nvidia become the fifth most valuable company in the US market.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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