By Asa Fitch
Nvidia’s quarterly sales tripled from a year ago, surpassing Wall Street’s heightened expectations, and the company indicated momentum from the artificial-intelligence boom remains strong.
The chip company that underpins almost all of the world’s most advanced AI systems said it made $22.1 billion of revenue in its last fiscal quarter, higher than analyst forecasts of around $20.4 billion. Net profit was $12.29 billion, compared with $1.41 billion a year earlier.
Nvidia also forecast around $24 billion of sales for its current quarter, ahead of Wall Street expectations in a FactSet survey.
The company’s shares were flat in after-hours trading. The stock has more than tripled over the past year.
Nvidia has been the primary financial beneficiary of the AI wave so far, as big tech companies like Microsoft, Google and Apple place large bets on the technology and need Nvidia’s hardware to drive them. In addition to ChatGPT, a number of other popular AI products have started to hit the market in recent months, including digital assistants for coding and business from Microsoft.
Nvidia has transformed itself in the space of three years from a company focused on chips that help videogames run faster to the red-hot center of an AI boom that has propelled it to a valuation near $2 trillion. The stock’s run made Nvidia the U.S.’s third-most-valuable listed company earlier this month before losing ground in the past two days. Only Microsoft and Apple were worth more.