Nvidia revenues up 256%! Record quarter caused by the popularity of artificial intelligence

The artificial intelligence industry means that not only companies responsible for creating AI tools earn millions of dollars. Nvidia's revenue increased by 256%, and the company's profit increased by a record 768%, as reported by Jensen Huang. The graphics chip company is turning out to be one of the biggest winners of the generative artificial intelligence craze.

Nvidia's revenues are up – they even exceeded the expectations of investors and analysts

Although it seemed that 2023 would be the year of artificial intelligence, the popularity of this trend is also even more visible in the first quarter of the new year. Record profits are recorded not only by creators of tools based on generative intelligence, but also by component makers. The revenues of Nvidia, the world's main manufacturer of graphics chips, increased by as much as 256%. Moreover, according to Jensen Huang, the company's profit exceeded 768%, which surprised not only investors but also analysts.

The corporation, well known to all players, is today worth as much as USD 1.8 trillion, thanks to which its stock market value exceeds such Big Tech giants as Amazon or Alphabet (Google). Nvidia's high revenues are caused by the constantly growing interest in the generative artificial intelligence industry. The development of AI is directly related to the development of graphics systems, which are the equivalent of gray cells for artificial intelligence.

Will Nvidia become the hegemon of the AI ​​industry?

The popularity of Nvidia graphics chips is clearly visible in the example of Mark Zuckerberg, who recently announced the purchase of as many as 35,000 AI graphics chips called H100. One such arrangement is worth about USD 30,000. Nvidia continues to expand its manufacturing capabilities while also developing their own artificial intelligence internally. This leads us to very interesting conclusions, because the company that supplies GPUs may soon become the hegemon of the AI ​​industry itself.

Although nothing is known about LLM from Nvidia at the moment, it is possible that Huang's company is working on its own version of the AI ​​chatbot. If this is the case, then thanks to the enormous availability of computing power, Nvidia's AI may become a serious threat in a market currently dominated by OpenAI and Google.