Nvidia shares reached record-high prices this week, reaching prices over $1000. For the first time in its history, Nvidia reported that the first fiscal quarter exceeded its estimated expectations for the first time in its history.
Due to the power of AI and its growing trend, investors saw the chip company as an asset where the AI boom can be measured. The suppressed expectations for the market prices for Nvidia shares demonstrated the demand for the artificial intelligence chips developed by the company. The CEO, Jensen Huang, stated that the company would see revenue after Blackwell – their first next-generation AI chips- was launched later this year.
“We will see a lot of Blackwell revenue this year,”
Nvidia also stated that the company will split its stock 10 to 1 after its 7% growth. Even more so, the expected revenue growth was $24.65 billion compared to the actual revenue, which was $26.04 billion.
Nvidia also stated that their data center category grew by 427% compared with their quarter one year ago. Colette Kress, the company’s chief finance officer, noted that this growth was due to their Hopper graphics processors. “A big highlight this quarter was Meta’s announcement of Lama 3, their latest large language model which used 24,000 H100 GPUs,” which also sustained the revenue growth.
Before becoming one of the biggest suppliers for companies building artificial intelligence, Nvidia was well known for its hardware production for 3D games. Even more so, the company also sells chips for cars and advanced workstations.
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