There is no doubt that Nvidia will become more and more important in the future as the company has simply broken a huge record. You haven’t heard the last of it yet.
Here’s how Nvidia made Wall Street history by increasing its stock market value by $277 billion after releasing a quarterly report that beat expectations. The daily gain is the largest ever on Wall Street, surpassing Meta Platforms’ previous record.
Nvidia is doing very well
Demand for Nvidia’s specialty chips used in AI computing continued to exceed analysts’ high expectations. The Silicon Valley company therefore expected sales growth of 233% for the current quarter, which was above market expectations. Nvidia, which controls about 80% of the market for high-end AI chips, reported fourth-quarter revenue that more than tripled from a year ago to reach $22.10 billion. It’s just huge.
However, concerns remain about the impact of US restrictions on chip sales in China on Nvidia’s revenue growth. Sales in China accounted for about 9% of Nvidia’s fourth-quarter revenue, up from 22% in the previous quarter. It is therefore possible that results next year and for the rest of the year will be slightly less positive. However, given the continued growth of AI and increasing sales of electric cars, the manufacturer still has very good years ahead. Enough to drink champagne several times a year.
In the gaming market, Nvidia still dominates and the company should use 2024 to launch its famous RTX 5000 generation (yes, already), with certainly another new technological gap on the agenda. A new opportunity to boost sales and increase revenue. I hope no shortage will spoil the party.
What do you think of Nvidia’s rise?
