Nvidia emerges as one of the big winners of the rise of artificial intelligence. The company based in Santa Clara (California) manufactures computer processors of great computing power, just those that are demanded before the impulse of the new technology. The company has announced revenue forecasts well above analysts' forecasts and has soared on the stock market by around 25% in trading outside the usual hours of the session.
The technology company has announced this Wednesday at the close of the market that it has achieved revenues of 7,190 million dollars (about 6,700 million euros) in the first quarter of the year (February to April), 13% less than a year ago (due to the decline of the video game business) and 19% more than in the previous quarter. The profit of those first three months has been 2,043 million dollars, 26% more than a year ago and 44% more than the previous quarter. The company usually offers both comparisons, given the strong pace of growth it has had in its history.
"The computer industry is going through two simultaneous transitions: accelerated computing and generative AI," said Jensen Huang, founder and CEO of Nvidia, in a statement. "A trillion dollars of installed global data center infrastructure will move from general-purpose to accelerated computing, as enterprises rush to apply generative AI in every product, service and business process."
The high-powered processors designed and manufactured by Nvidia have been added to different booming businesses. In its 30-year history, Nvidia has pioneered the graphics processing of computers and video game consoles. To have increasingly better images, it has been exponentially increasing the power of its processors, with capabilities for robotics, cloud computing, aerospace, weapons manufacturing, the metaverse, autonomous driving, image recognition and, of course, artificial intelligence.
Amazon Web Services, Google Cloud, Microsoft Azure and Oracle are among the firms vying to lead in artificial intelligence, but all of them turn to Nvidia for their data centers and processors.
Nvidia has announced that it expects its revenue to be around 11,000 million dollars in the second quarter of the year, pulverizing the forecasts of 7,150 million dollars that analysts had on Wall Street. The company invoices with very high margins, so that translates into a great increase in profitability.
The data center business grew 14 percent to sales of $4.280 billion, driven by demand for its powerful processors from cloud service providers as well as large consumer Internet companies that use Nvidia's chips to train and deploy generative AI applications such as OpenAI's ChatGPT.
Investors have celebrated and the shares have soared more than 25% over the close of trading on Wednesday, of $ 305 per share, which gives the company a market value of $ 755,000 million. The price already accumulated a rise of 109% even before the rise after the publication of the results on Wednesday.
The company had no name when it was founded in 1993 and the partners started using NV, initials for next version, or next version. When it came time to put a definitive name they looked for words that began with the letters nv. Finally, from the Latin invidia (envy) they deleted the first letter to put their final name. His business is now the envy of the sector.
Follow all the information of Economy and Business on Facebook and Twitter, or in our weekly newsletter
