Nvidia, one of the largest producers of graphics processing units (GPUs), announced a 265% year-on-year revenue rise as global demand for artificial intelligence (AI) technology grew.
According to the most recent fourth-quarter financial data, Nvidia generated $22.1 billion in revenue, up 22% from the previous quarter and 265% from the previous year. Jensen Huang, Nvidia’s founder and CEO, attributed the increase in revenues to rising global demand for accelerated computing and generative AI. The chipmaker has a market capitalization of $1.67 trillion.
The results come as Nvidia has surpassed Elon Musk’s Tesla as Wall Street’s most-traded company. According to Reuters, almost $30 billion in Nvidia shares were traded in the last 30 trading sessions, whereas Tesla’s average was around $22 billion in the same timeframe.
On January 27, Musk reaffirmed Tesla’s aim to spend more than $500 million on AI technology from Nvidia alone in 2024. He said this:
“The table stakes for being competitive in AI are at least several billion dollars per year at this point.”
Tesla also intends to purchase AI-related hardware from AMD, Nvidia’s major GPU competition.
And now look what’s happened :( https://t.co/2wcgZnCwlG
— Elon Musk (@elonmusk) February 18, 2024
The Nvidia RTX series, which debuted in September 2018, is regarded as the go-to platform for generative AI enthusiasts, gamers, and producers. Nvidia generated $18.1 billion in sales in the third quarter of 2023, bolstered by a $1.2 trillion market capitalization.
