Source: AFP
Nvidia said on Wednesday that its profit jumped to $12.3 billion in the recently ended quarter, driven by record high revenue driven by demand for chips that power artificial intelligence.
The Silicon Valley chip titan reported record revenue of $22.1 billion in the quarter ended in late January and a record $60.9 billion in revenue for the fiscal year.
Profit in the same quarter a year ago was $1.4 billion, while revenue in the same quarter a year ago was $6 billion, the company said.
“Accelerated computing and genetic artificial intelligence have reached a tipping point,” said Nvidia CEO Jensen Huang.
“Demand is growing globally across companies, industries and nations.”
Nvidia shares jumped more than eight percent to $733.68 in after-market trading following the earnings results.
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Revenue at its data center computing unit hit a record $18.4 billion in the quarter, more than quadrupling from the same period a year earlier, according to Nvidia.
“Our Data Center platform is powered by increasingly diverse drivers,” Huang said.
“Vertical industries – led by automotive, financial services and healthcare – are now at the multi-billion dollar level.”
The company said it expects total revenue of $24 billion in the current quarter.
Nvidia chief financial officer Colette Kress had previously warned analysts that new US export control regulations targeting China and other markets, including Vietnam and parts of the Middle East, were expected to hit chip sales. of Nvidia data centers in these markets.
Nvidia had expressed confidence that strong growth in chip sales in other regions would more than make up for what has been lost in China, Kresse said.
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The United States late last year said it was tightening restrictions on exports of cutting-edge artificial intelligence chips to China.
Calls for further closure of the supply chain grew after the world discovered the powers of artificial intelligence with the launch of ChatGPT, a tool that debuted in November 2022.
Also alarming in Washington was the news that China’s Huawei had released a new smartphone that featured a powerful advanced chip, produced at home.
When they announced the enhanced restrictions, US officials insisted they were intended to close loopholes and prevent China from developing artificial intelligence for military use.
After the announcement, China said it was “strongly displeased” and “strongly opposed” to the restrictions.
Source: AFP