US chip manufacturer: Nvidia continues to grow explosively thanks to the AI ​​boom

The AI ​​boom has become a gold mine for the chip company Nvidia – and the business is getting bigger and bigger. In the last quarter, sales jumped 94 percent year-on-year to $35.1 billion. Profit more than doubled to $19.3 billion. At the same time, investors were hoping for an even better forecast for the current quarter. The shares fell 2.5 percent in after-hours US trading.

Nvidia’s chip systems are used around the world to train artificial intelligence applications. Heavyweights like Google or the Facebook group Meta fill entire data centers with it – but AI start-ups like the ChatGPT inventor company OpenAI also rely on it. This key position allows Nvidia’s business to continue to grow.

In the last quarter alone, Nvidia’s sales of data center technology jumped 112 percent year-on-year to $30.8 billion. This was above analysts’ expectations.

Next chip generation on the way

In the current quarter, Nvidia plans to deliver the first systems with the new “Blackwell” chip to customers. At the same time, the group warned that demand for both “Blackwell” processors and the current generation called “Hopper” would exceed supply for several quarters.

At the same time, Nvidia boss Jensen Huang sees the computer world only at the beginning of the transition towards artificial intelligence and learning machines. We are on the way to a future in which programs carry out tasks independently and employees are supported by “AI colleagues” and robots. All of this leads to a large-scale reconstruction of the data centers.

From graphics cards to AI dominance

Just a few years ago, Nvidia was primarily known to gamers as a provider of graphics cards. But then it turned out that the technology behind it is also ideal for applications with artificial intelligence.

This gave Nvidia a decisive lead when the current AI boom gained momentum with the release of the chatbot ChatGPT around two years ago. Chip rivals like AMD and Intel are far behind. AMD is preparing for revenues of around five billion dollars from AI chips this year.

For the current quarter, Nvidia predicted sales of $37.5 billion – with the caveat that it could be two percent higher or lower. This was roughly in line with market expectations. However, some analysts had hoped for an even better forecast.

The growth of the business has also caused the price of Nvidia shares to skyrocket in recent months. It is currently worth around three times more than it was at the beginning of the year (around $142).

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