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.

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.

Stay Informed: The rapid advancements in AI and its diverse applications are reshaping entire industries. Staying informed about these developments, including the evolving investment landscape, is crucial for understanding the future of technology and its impact on global markets.