Soaring AI demand sends Nvidia profits rocketing up by 109% making it the world’s most valuable company
US chipmaker Nvidia beat third-quarter sales expectations after more than doubling its profits on growing demand for artificial intelligence.
The Santa Clara, California-based company, which solidified itself as the world’s most valuable company after its third-quarter performance, saw its profits rise 109% to $19.3 billion, exceeding analyst expectations. surpassed $17.4 billion.
Meanwhile, revenue rose 94% year-on-year to $35.1 billion, while analysts had forecast revenue of $33.2 billion.
Nevertheless, Nvidia shares fell 2.3% to $14.58 in after-hours trading as investors questioned the prospects for AI as well as concerns that tech stocks are overvalued.
Looking ahead, the company expects to generate revenue of $37.5 billion in the next quarter, while analysts are predicting revenue of $37.1 billion.
Founder and CEO Jensen Huang said: “The age of AI is in full swing, driving a global shift to Nvidia computing,” adding that demand for Nvidia’s latest chips has been “incredible.”
‘AI is transforming every industry, company and country. Companies are adopting agentic AI to revolutionize workflows. Investments in industrial robotics are increasing thanks to breakthroughs in physical AI. And countries have woken up to the importance of developing their national AI and infrastructure,” he added.
The AI chipmaker has seen a dizzying rally in the two years since ChatGPT launched an AI frenzy.
American chip manufacturer Nvidia saw its third-quarter profit rise by 109% to $19.3 billion
Founder and CEO Jensen Huang (pictured) has credited growing demand for AI
As such, Nvidia’s success has become a bellwether for the ongoing artificial intelligence boom.
The market capitalization has increased more than nine times since the end of 2022.
Nvidia is currently worth $3.6 trillion, overtaking Apple.
Nvidia chips are used by more than 40,000 companies and its customers include Amazon, Apple, Tesla, Microsoft and Meta.
Tech giants are buying Nvidia chips to build AI data centers, which power generative AI products like ChatGPT.