AI Chips Boost Nvidia’s Sales by Over 100%

Explore how the AI chip market is booming and Nvidia is at a 100% surge in sales

Nvidia, a prominent player in the field of artificial intelligence (AI) and graphics processing, has made significant waves in the tech industry once again. The latest news reveals that Nvidia's sales have more than doubled, showcasing the company's continued growth and dominance in the AI chip market.

Nvidia reports record sales, more than doubling due to surging demand for AI chips. Q2 revenue surpasses $13.5billion; further Nvidia Sales Growth is expected this quarter. The company plans a $25bn stock buyback. Its shares surged over 6.5% in extended NY trading, adding to significant gains this year.

Nvidia's CEO, Jensen Huang, exclaimed, "A new computing era has begun," as companies globally shift to accelerated computing and generative AI.

Nvidia's data center division, which sells AI hardware, was the main driver of the impressive rise. Due to the demand for its next-generation processors from large consumer internet companies and cloud computing service providers, revenue for that unit increased by more than 170% year over year to more than $10 billion.

Nvidia's stock market worth increased by more than $1 trillion this year as the value of its shares more than tripled. Along with Apple, Microsoft, Alphabet, and Amazon, it became the fifth publicly traded US corporation to enter the infamous "Trillion Dollar Club" as a result.

The H100, a new Nvidia GPU designed for use in AI applications, is in high demand in particular. It started delivering in September. The chips, which are manufactured using a sophisticated production method and require similarly sophisticated packaging that combines GPUs with specialized memory chips, have caused both large and small businesses to struggle to locate supplies of them.

The actions of Taiwan Semiconductor Manufacturing Company, which handles the packaging in addition to manufacturing the GPUs, are significantly responsible for Nvidia's ability to expand delivery of the H100.

Nvidia, once famed for gaming graphics chips, now powers the majority of AI applications, claiming 95% of the machine learning market. ChatGPT, using 10,000 Nvidia GPUs in a Microsoft supercomputer, exemplifies this shift. AI products are poised to reshape computing and our daily lives significantly.