Nvidia, the American chipmaker based in Santa Clara, California, has reported a remarkable 109% increase in profit, reaching $19.3 billion in its third quarter, driven by soaring demand for artificial intelligence technologies.
The company's revenue also surged 94% year-on-year to $35.1 billion, surpassing analyst expectations of $33.2 billion. Despite this strong performance, Nvidia's shares dipped by 2.3% in after-hours trading amid investor concerns about the sustainability of AI growth and potential overvaluation of tech stocks.
Looking forward, Nvidia anticipates revenue of $37.5 billion for the next quarter, slightly above analysts' projections of $37.1 billion. CEO Jensen Huang emphasized the transformative impact of AI across various sectors, stating, 'The age of AI is in full steam, propelling a global shift to Nvidia computing.'
Huang noted that enterprises are increasingly adopting AI technologies, with significant investments in industrial robotics and national AI infrastructure. Nvidia's market capitalization has surged to $3.6 trillion, surpassing Apple, reflecting its central role in the ongoing AI revolution.
More than 40,000 companies, including tech giants like Amazon, Apple, Tesla, Microsoft, and Meta, utilize Nvidia's chips to develop AI data centers that power generative AI applications such as ChatGPT.