Nvidia basks in the glow of the AI summer
Nvidia's blowout quarter and rise to become the world's sixth most valuable company has shocked even the most hardened of market veterans.
As the creator of ChatGPT, OpenAI may be the firm most synonymous with the ongoing artificial intelligence boom. But it is chipmaker Nvidia, not OpenAI or Microsoft or Alphabet, that has most enjoyed the sunshine of the AI summer.
Nvidia's earnings call on Thursday was more a victory lap than investor presentation. Revenue was up 88% compared to the previous quarter (!) and up 101% compared to the same period a year earlier at USD13.5 billion ($21.5 billion). And the company said it expects to generate USD16 billion in the current quarter, way above the USD12.6 billion that Wall Street analysts had been predicting.
"In 30 years of looking at company releases and forecasts, I don't think I've ever seen the magnitude of an upgrade this large," said Alex Pollak, whose Loftus Peak fund invested in Nvidia eight years ago.
With a market cap of USD1.164 trillion, Nvidia is currently the sixth most valuable company in the world. It has assumed that status after a 229% rise in its share price in 2023 alone.
