NVIDIA experienced phenomenal growth in the past quarter, driven by rapid advances in artificial intelligence technologies and the surge in demand for data center GPUs.
NVIDIA's success
Staggering growth
NVIDIA, a leader in GPU development, has recorded tremendous revenue growth 262% in the previous quarter, exceeding the most optimistic investor forecasts. This phenomenal result pushed the corporation's shares to a significant increase on the stock exchange. In addition, NVIDIA announced a 10-for-1 stock split, effective June 7, as well as a 150% increase in its quarterly dividend.
Record sales
NVIDIA posted $26 billion in quarterly revenue, beating previous estimates of $24 billion .7 billion dollars. Such an impressive result was achieved thanks to record sales of artificial intelligence chips. For the current quarter, the corporation forecasts revenue of about $28 billion. NVIDIA shares, which have skyrocketed more than 90% year-to-date, rose 2% on the day.
High demand for AI
Demand for NVIDIA GPUs for AI data centers intelligence has exploded in the past year as major technology companies raced to develop the computing infrastructure needed to create powerful new artificial intelligence products. Giants such as Google, Microsoft, Meta and Amazon have noted that their spending on these purposes will remain high throughout 2024.
Accelerated development cycle
NVIDIA intends to speed up the development cycle of its new chips by releasing new models annually instead of the previous two-year cycle. This was stated by the company's CEO Jensen Huang. NVIDIA also plans to accelerate the development of all other chips it makes to accommodate the annual update cycle - this could include consumer graphics cards.
- As Huang noted: "I can announce that there is another chip after Blackwell. We will work on a one-year basis."
Continuous development
Previously, NVIDIA created a new architecture approximately every two years - for example, Ampere was introduced in 2020, Hopper - in 2022, and Blackwell in 2024. Analyst Ming-Chi Kuo recently reported that the next Rubin architecture will arrive in 2025 with the R100 GPU, and Huang's comments indirectly confirm this possibility.
Huang noted, "New processors, new GPUs, new network adapters, new switches... there's a whole host of chips coming."
When an analyst asked Huang to explain how Blackwell GPUs will evolve while Hopper GPUs are still selling well, he explained that the new generations of NVIDIA chips are electrically and mechanically compatible with previous versions and work with the same software. Customers will "easily move from H100 to H200 to B100" in existing data centers, he said.
Glossary
- NVIDIA is a leading American company, developer of graphics processors and systems on a chip, widely used in the gaming industry, professional visualization centers, data processing and automotive electronics.
- Jensen Huang is the founder, president and CEO of NVIDIA.
- Ampere, Hopper, Blackwell, Rubin are code names for various NVIDIA GPU architectures.
- Meta is an American technology company that owns social networks Facebook, Instagram, WhatsApp, etc.
- Amazon is the largest American e-commerce and cloud computing company.
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Discussion of the topic – NVIDIA revolution: new graphics cards every year and record sales of AI chips
NVIDIA announced a transition to an annual development cycle for new video cards and record revenue of $26 billion for the quarter thanks to sales of artificial intelligence chips. The company also announced a stock split and increased dividends.
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Иван
Amazing results from NVIDIA! It's incredible that their revenue grew so much due to demand for AI chips. 🚀 It looks like artificial intelligence is becoming a real growth driver in the technology industry.
Сoфия
Yes, that's impressive! Companies like Google, Microsoft, and Amazon are investing heavily in AI technology, and NVIDIA was in the right place at the right time with its GPUs. 💻 I wonder how they plan to use the additional funds for further growth and innovation?
Жан
I heard that NVIDIA plans to speed up the release of new chips and switch to an annual update cycle. 💡 This should help them stay ahead of the curve in the race for AI performance. Although I'm surprised they decided on such a fast pace of development.
Анна
As far as I know, the rapid release of new generations of chips will allow NVIDIA to offer customers a smooth transition to more powerful solutions without having to change the entire infrastructure. 🆙 This is very convenient for large data centers that can gradually update their systems.
Карл
Have you heard about the announced NVIDIA 10 for 1 stock split? 📈 This will make the shares more accessible to retail investors and could attract even more interest in the company. I think now is a great time to invest in NVIDIA.
Фредерик
Don't be so optimistic, young man! 🧓 These tech companies are growing too fast and will face a recession sooner or later. Remember the dot-com bubble? So be careful with your investments!
Мария
Hmm, I don't agree with this skeptical view. 😕 Artificial intelligence has already firmly entered our lives, and the demand for powerful computing solutions will only grow. NVIDIA has a strong position in this market and their innovation will help them remain a leader in the long term.
Роберто
Yes, I also see great potential in NVIDIA. 🔍 Their chips are used not only in data centers, but also in the automotive industry, robotics and other promising fields. And their accelerated development cycle speaks of the company's serious ambitions. It will be interesting to follow their next steps!