Nvidia stock spikes 25% driven by A.I. chip demand

By Andrew Lokenauth

Nvidia CEO Jensen Huang said the company saw “surging demand” for its products, particularly in the data center and gaming markets. He also said that Nvidia was well-positioned to benefit from artificial intelligence (AI) growth. “We are seeing strong demand for our products across all of our markets,” Huang said in a statement. “We are well-positioned to continue to grow in the years ahead as AI adoption accelerates.”

Nvidia’s revenue for the quarter was $7.19 billion, up 16% year-over-year. Earnings per share were $1.09, up 49% year-over-year. The company’s strong performance was driven by strong demand for its AI chips, which are used in a wide range of applications, including data centers, gaming, and self-driving cars. Nvidia’s data center group, which uses Nvidia chips to train and deploy AI applications like OpenAI’s ChatGPT, reported $4.28 billion in sales, a 14% annual increase.

Nvidia’s gaming business is also growing rapidly. The company’s GPUs are used in high-end gaming PCs and consoles. The growth of the gaming market is being driven by the increasing popularity of esports and other online gaming activities. Nvidia’s automotive business is still in its early stages, but it has the potential to be a major growth driver in the years to come. The company’s GPUs are used in self-driving cars and other autonomous vehicles. Sales in this area surged 114% year-over-year.

Nvidia’s strong Q1 2024 performance underscores the significance of AI and data center products in shaping the future of tech companies. As more companies adopt AI technologies to improve their operations and gain a competitive advantage, we can expect to see continued growth in this area. Nvidia is well-positioned to benefit from this trend due to its leading position in the market for AI chips.

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