Nvidia's market valuation soared by 25 percent to more than $940 billion after predicting strong earnings amid an artificial intelligence boom.
The GPU-maker guided for second-quarter revenue of $11 billion, plus or minus two percent, well above analyst expectations of $7.17bn.
“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” Jensen Huang, Nvidia’s CEO, said.
“A trillion dollars of installed global data center infrastructure will transition from general-purpose to accelerated computing as companies race to apply generative AI into every product, service, and business process.”
The company's share price had already more than doubled over the course of 2023, and is now up 235 percent since its two-year low.
With cryptocurrencies cooling and supply chain woes followed by an oversupply, last year saw three straight quarters of revenue declines. Then came ChatGPT and other generative AI applications.
While other GPU makers and AI chip designers exist, Nvidia has cornered the AI compute market, leading to new supply constraints for its most powerful chips.
Earnings and investor appetite have soared on the back of this boom, although it is not yet clear how large the sector will grow.
Nvidia CFO Colette Kress told MarketWatch that the “inflection point of AI is here."
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