On Wednesday evening Nvidia, one of the most important technology companies in the world specializing in the production of chips for artificial intelligence, published its quarterly results and forecasts for the next quarter: both were assessed very positively by investors, thus stabilizing the entire artificial intelligence sector. In recent days, fear has spread among shareholders of many technology companies that the massive investments of recent years will prove to be a bubble destined to burst, and in this climate of uncertainty many technology companies have lost value on the stock market.
Nvidia said it had revenue of $57 billion in the quarter ended Oct. 26, $51 of which came from its data center division, facilities that store and manage large amounts of data and run online services, websites and artificial intelligence applications. Analysts’ estimates are around 49 billion. The sector that Nvidia is best known for now, namely processors used in computers for graphics cards, generated revenue of 4.3 billion, in line with analysts’ expectations.
The revenue estimate for the next six months is 65 billion, and is accompanied by very optimistic statements from its CEO, Jensen Huang, and other executives. Also in this case is a higher value than expected by analysts.
Nvidia’s results are considered indicative of general trends in the artificial intelligence sector, and the company’s forecasts have assured investors that the very high demand for these systems will continue, thus justifying large investments in the sector.
Over the past week, concerns that investor expectations are off target and company values are inflated by overinvestment have led to a selloff in technology company shares. Also noted was the withdrawal of investment in Nvidia by two major shareholders: Japanese bank SoftBank, whose operations are being watched closely by other operators in the sector, and Peter Thiel, one of the billionaire founders of PayPal.
Until three years ago, Nvidia was a much smaller company associated with the video game niche. However, when the first artificial intelligence systems began to attract major attention today, they used their processor expertise to produce the chips necessary for these programs. Currently the most advanced and coveted on the market is the model called Blackwell.
Excellence in chip production has increased the value of Nvidia shares significantly: since ChatGPT launched in November 2022, its market capitalization (the aggregate value of all its shares) has increased more than tenfold.
– Read also: Anthropic has discovered a way to make money with artificial intelligence
