nvidia market cap
There may be another boom in the world’s AI sector in the coming days. Because, there has been a huge jump in the profits of Nvidia, the world’s famous AI chip manufacturing tech company. This surge shows how much demand there is for the company’s chips and how much countries around the world depend on it. Just three weeks ago, Nvidia became the first publicly traded company to be valued at more than $5 trillion, thanks to its cutting-edge computer chips built for artificial intelligence. The company said that its profit in its latest quarter was $31.9 billion, which is 65% more than a year ago and 245% more than last year. In the technology sector, only Google’s main company Alphabet has earned more profit than this in a quarter.
Nvidia commands about 90% of the market for chips used in AI projects, and its financial performance has now become an indicator of what to expect from the rest of the tech industry, where huge sums of money are being invested in building massive data centers around the world.
Nvidia’s extremely high profits may ease concerns on Wall Street, where fears were growing that Silicon Valley companies were outspending demand for the services and products they create. The S&P 500 index has fallen 3.6% since Nvidia, the world’s most valuable public company, touched the $5 trillion mark. Nvidia shares have also fallen 10% during this period, although they are still up 34% since the beginning of the year.
Nvidia grew rapidly
Nvidia has grown rapidly since the AI boom began three years ago, and the recent quarter shows the same. In the three months ending in October, the company said that sales of its chips for AI data centers increased by 44% to $51 billion. This business helped bring the company’s total revenue to $57 billion, which is much higher than Wall Street’s estimate of $55.2 billion.
Most importantly, Nvidia indicated that a company that maintains its hold on an important product can continue to grow rapidly. Nvidia’s revenue in the current quarter is expected to increase by 65% compared to last year to $ 65 billion, which is as strong as in the previous quarters. This estimate is more than Wall Street’s expectation of $57 billion. The company’s CEO and co-founder Jensen Huang said that Blackwell’s sales have exceeded expectations and the demand for cloud GPUs is also very high.
Nvidia has upset investors in the past few months because it is investing its own money in some customers buying its chips. These deals have raised questions about whether Nvidia is promoting its own sales. For example, the company said it will invest $100 billion in OpenAI, which creates ChatGPT. OpenAI will get this money when it buys or rents Nvidia chips.