Nvidia shares surged nearly 25% in after-hours trading on Wednesday after the company reported market-crushing revenue guidance for its fiscal second quarter.[0] The company expects to generate $11 billion, plus or minus 2%, with solid demand for its artificial intelligence (AI) chips driving the growth.[0] This comes despite a 13% decline in the top line in Q1 due to a slump in the gaming division.[1] Nvidia CEO Jensen Huang said that “a trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process”.[1] Nvidia is the most valuable chipmaker by leaps and bounds, with the jump in market capitalisation putting it on the doorstep of becoming the next trillion dollar company.
0. “Nvidia (NASDAQ:NVDA) Stock Spikes on Robust AI Chip Demand” TipRanks, 25 May. 2023, https://www.tipranks.com/news/nvidia-nasdaqnvda-stock-spikes-on-robust-ai-chip-demand
1. “Nvidia’s beats estimates with quarterly revenue of $7.19B, down 13% from year ago” VentureBeat, 24 May. 2023, https://venturebeat.com/ai/nvidias-beats-estimates-with-quarterly-revenue-of-7-19b-down-13-from-year-ago/