Nvidia increased profits almost 7 times thanks to interest in AI – Kommersant
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In the fourth quarter, the revenue of the American manufacturer of chips and other equipment Nvidia increased by 265%, amounting to $22.1 billion. Net profit increased almost 9 times (by 769%), to $12.3 billion.
Revenue for 2023 as a whole increased by 126%, to $60.9 billion, net profit by 581%, to $29.8 billion. Most indicators turned out to be better than analysts’ forecasts. Nvidia shares rose 9% in over-the-counter trading yesterday. The company’s capitalization reaches $1.7 billion, thereby in recent months it has become one of the most expensive American companies. The company also forecasts that its revenue will triple in the current quarter.
Nvidia’s strong performance comes as demand for microprocessors for artificial intelligence (AI) surges. The company is a market leader in many types of AI chips, including AI accelerators, which are used to speed up neural networks and other artificial intelligence systems. Nvidia is actively investing in expanding the production of AI chips, as the company has not yet kept up with the demand for them.
The company’s CEO Jensen Huang said that “throughout the year, demand will continue to be higher than our supply, and we will do our best (to meet it.— “Kommersant”)”. According to him, “demand is growing all over the world, from different companies, industries and countries.” Wedbush analyst Daniel Ives also noted that Nvidia’s results suggest that “the AI revolution has just begun and has not yet peaked.”
Read more about trends in the global chip market in the material “Good Hope Chip“
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