Nvidia projected quarterly revenue more than 50% above the average Wall Street estimate , and announced it would have a larger supply of artificial intelligence chips in the second half of 2023.
Nvidia is close to becoming the first chip company to achieve a $1 trillion valuation after a stellar forecast for its growth thanks to demand for AI-based products. Shares of Nvidia, the fifth most valuable company in the United States, rose 25% on Thursday after the company forecast strong revenue growth for the current quarter, sending the price of shares to an all-time high of $346.92.
Nvidia is the leading provider of AI chips, and its products are used in a wide range of applications, including self-driving cars, gaming, and data centers. This success also reflects the growing importance of AI in the global economy.
A growth that impacts the entire AI ecosystem
Nvidia’s strong earnings also provided a boost to the chip sector and AI-focused companies, leading to a surge in stock markets from Japan to Europe. In the United States, companies such as Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O) and AMD (AMD.O) saw their shares rise significantly, with increases ranging from 3% to 10%
“We’re really only seeing the tip of the iceberg. This could be another turning point in technological history, like the internal combustion engine or the internet,” Derren Nathan, head of equity research at Hargreaves Lansdown, told Reuters .
Nvidia heading for a trillion dollars
Nvidia ‘s history as a billion dollar company is one of innovation and disruption. Founded in 1993 by Jen-Hsun Huang, Curtis Priem, and Chris Malachowsky, it became a major player in the video game industry with its graphics processing units (GPUs).
In the 2000s, the company focused on developing GPUs for other applications, such as scientific computing and data analysis, fueling its growth and becoming the world’s leading graphics card provider.
In recent years, Nvidia has focused on developing GPUs for artificial intelligence applications, a rapidly growing field that is expected to have a major impact across various industries.
The company is well positioned for further growth in the coming years and is likely to remain a major player in the chip industry for a long time to come.