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23/05/24
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Nvidia Shares 9% Higher After Revenue Surges
On Thursday, shares in Nvidia rose over 9% after the semiconductor group’s Q1 results surged and its CEO said demand for its upcoming AI-optimized chip had skyrocketed.
This was the latest massive return for Nvidia, whose graphics processing units for data centers have become crucial parts of the architecture supporting the development of generative AI products.
Nvidia’s performance has therefore become a bellwether of the course of AI demand and a major influence on wider market sentiment. U.S. stock futures rose after the report.
Jensen Huang, Nvidia’s CEO said in a statement the next industrial revolution has started. He added that AI would deliver significant productivity gains to virtually every industry and help companies be more energy- and cost-efficient.
In a post-earnings call, Huang told investors that the company this year would be boosted by revenue from its Blackwell line of chips, in an indication that it does not see a short-term let-up in the AI boom.
He added that other chips would be rolled out as part of a one-year cycle of new launches.
Revenue in the 3 months to April 28 surged by 262% from the prior year to $26B, beating estimates of $24.7B.
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