Leading technology powerhouse Nvidia has reported a landmark surge in sales, more than doubling its revenue due to the escalating demand for its artificial intelligence (AI) chips.
The company has announced that its revenue for the three-month period ending in June has surged to an impressive $13.5 billion (£10.6 billion).
Buoyed by this success, Nvidia anticipates a further surge in sales during the current quarter. As part of its strategic approach, the company also intends to initiate a stock buyback program amounting to $25 billion.
Following this news, Nvidia’s shares experienced a remarkable surge of over 6.5% in extended trading on the New York Stock Exchange. This surge compounds the substantial gains the company’s shares have already achieved over the course of this year.
Additionally, Nvidia has projected revenue of approximately $16 billion for the three months concluding in September. This projection significantly surpasses Wall Street’s expectations, equating to a staggering rise of around 170% compared to the same period in the previous year.
Nvidia’s CEO, Jensen Huang, heralded the commencement of a new era in computing. He stated, “A new computing era has begun,” highlighting the widespread transition from general-purpose to accelerated computing and generative AI across companies worldwide.
The exceptional performance is chiefly attributed to Nvidia’s data center business, notably including its AI chips. The revenue generated by this division reached over $10.3 billion, indicating an impressive surge of more than 170% from the preceding year. This upswing is largely attributed to the adoption of Nvidia’s next-generation processors by cloud computing service providers and major consumer internet companies.
