Nvidia Corp Ascends As Insatiable Demand For AI Pushes Blowout Forecast
by upasana sarbajna Technology 24 August 2023
The stocks climbed more than 6% in the extended trading after NVIDIA had said that sales would be about $16 billion in the three months that ended in October.
NVIDIA Corp, the popular chipmaker at the heart of an industry wide run towards artificial intelligence computing, which had delivered a third straight sales prediction that excelled the Wall Street estimates, that was further fueled by a surging demand for the AI processors.
The shares climbed more than 6% in the extended trading after NVIDIA had said that the sales would be about $16 billion within three months, the last of which ends in October.
Analysts had also estimated just $12.5 billion, as per the data gathered by Bloomberg. Nvidia’s results for the last quarter also excelled past projections, and it had approved an extra $25 billion in the stock buybacks.
The outlook, however, underscores Nvidia’s role as the critical beneficiary of the computing room for AI. Faced with high demands for multiple chatbots and other artificial intelligence tools, operators at the data center have been stocking up on the processors of the company that are adept at dealing with the tough workloads that are a non-negotiable need for artificial intelligence. That has helped Nvidia to rapidly pull out from an industrial chip slump and increase the growth of sales to the fastest rate in multiple years.
“A new computing era has begun,” Jensen Huang, the Chief Executive Officer, added in a statement. “Companies around the world are shifting to more powerful computing that can handle ChatGPT-style generative AI,” he says. The post-market profits added more than the threefold increase for the shares this year. The stocks closed at $471.16 on Wednesday in New York before Nvidia published its quarterly report.