In the midst of the artificial intelligence boom, Nvidia recorded revenues of 30 billion US dollars for its second quarter, but what makes this American company strong in this sector?
“Today, artificial intelligence is on everyone’s lips, so Nvidia is on everyone’s lips,” summarized Stéphane Ricoul, vice-president at Talsom and expert in the digital economy.
The company, considered the second largest publicly traded company, has doubled its revenue for the period from the end of April to the end of July 2024. If a person invested $10,000 in Nvidia in November 2022, he would have $100,000 in his pocket today.
“Nvidia is the one that builds the small processors, the small chips that allow us to obtain the phenomenal computing power that artificial intelligence needs,” explained Mr. Ricoul in an interview with LCN on Wednesday.
The food, agriculture and manufacturing sectors are particularly interested in the automation of processes offered by this type of technology.
Its main customers are also data centers such as Amazon, Google and Microsoft, as well as China.
“Nvidia’s sales are running out of steam in China because the Biden administration has put some limitations on exports,” the digital economy specialist added.
Not enough profit?
Despite the better-than-expected financial results, Nvidia shares fell 4.79% in after-hours trading on Wall Street.
«[Les analystes] “They look at the third and fourth quarters and see that Nvidia’s profit margins are eroding. They’re great, but they’re eroding,” Ricoul said.
In any case, the craze for artificial intelligence is not likely to run out of steam any time soon.
“It’s a growing appetite, the number of phone calls I receive per day to accompany [des clients] “In terms of the choice of artificial intelligence, it is not denied,” the expert stressed.
