Nvidia’s Profit Hits $58.3 Billion as A.I. Boom Gathers More Steam
The chip maker said its profit in its most recent quarter jumped 211 percent from a year earlier thanks to extreme demand from other big technology companies.
The chip maker said its profit in its most recent quarter jumped 211 percent from a year earlier thanks to extreme demand from other big technology companies.
Another huge quarterly profit announced by the chip maker Nvidia on Wednesday provided solid evidence that Silicon Valley’s artificial intelligence spending spree is still gathering steam.
Nvidia said profit in its most recent quarter was $58.3 billion, up 211 percent from a year earlier and topping expectations by financial analysts. Just three years ago, the Silicon Valley company’s quarterly profit was $2 billion — about one-thirtieth of what it is today.
Nvidia’s chips are an essential part of big A.I. projects, and other tech companies have been lining up to spend tens of billions of dollars on those chips. Nvidia is now the most valuable publicly traded company in the world, and its financial results have become a bellwether for the tech industry.
Nvidia’s biggest problem appears to be meeting demand from its spendthrift tech industry customers, a strong indication that the A.I. boom is going strong. On Wednesday, the company said annual spending on A.I. infrastructure would reach $3 trillion to $4 trillion in 2030, up from about $1 trillion today.
It was the second consecutive quarter Nvidia’s profit had doubled, and the second time the chip company had a bigger profit than other tech giants like Apple. Revenue for the quarter was $81.6 billion, up 85 percent from a year earlier, also topping expectations.
Nvidia also reassured Wall Street about its future. The company projected that sales in the current quarter would nearly double from last year, to $91 billion. That exceeded Wall Street’s prediction of $86 billion. Nvidia’s share price fell 1 percent in after-hours trading, giving up most of its gains from earlier in the day.
