Nvidia, the powerhouse behind powerful graphics chips, reported a whopping 265% increase in annual revenue thanks to skyrocketing demand for artificial intelligence (AI) tools.
Nvidia’s latest financial report revealed a mind-blowing $22.1 billion in revenue for the last quarter, marking a 22% jump from the previous quarter and a staggering 265% surge compared to last year. The company’s founder and CEO, Jensen Huang, attributes this phenomenal growth to the exploding global demand for “accelerated computing” and “generative AI.” This impressive performance has boosted Nvidia’s market cap to a staggering $1.67 trillion.
In a surprising turn of events, Nvidia has usurped Tesla’s reign as the most-traded stock on Wall Street. According to a Reuters report, roughly $30 billion worth of Nvidia shares were traded in the past month, compared to $22 billion for Tesla in the same timeframe. This shift signifies the growing investor confidence in Nvidia’s AI-powered future.
Interestingly, despite the trading crown changing hands, Nvidia and Tesla are heavily invested in AI development. In January, Elon Musk confirmed Tesla’s plans to spend over $500 million on Nvidia’s AI hardware in 2024, acknowledging the “several billion dollars per year” cost necessary to remain competitive in the AI race. Tesla also plans to procure AI hardware from Nvidia’s main rival, AMD.
Launched in 2018, Nvidia’s RTX series of graphics cards has become a go-to choice for AI enthusiasts, gamers, and creative professionals. This popularity and the strong market cap of $1.2 trillion in Q3 2023 further cements Nvidia’s position as a leader in the AI hardware landscape.
Yann LeCun, the chief AI scientist at Meta, recently acknowledged Nvidia’s dominance in the AI hardware industry, even going as far as saying they’re “fueling the AI war” by providing the tools. However, LeCun expressed concerns about the reliance on text-based models for training AI systems, arguing that text lacks the nuance and understanding of the real world.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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