The world’s most valuable company has reported another series of expectation-beating results, heading off fears of the AI bubble bursting for now.
Nvidia’s revenue reached $57bn in the three months to October, higher than Wall Street estimates and the company’s own guidance.
That’s up 62% on the same time last year, and has been described by the business as an “outstanding” quarter.
Money blog: Ryanair flights to EU banned in ‘unprecedented’ decision
A profit measure called earnings per share was also better than expected at $1.30.
It matters as Nvidia has powered the artificial intelligence (AI) boom through its computer chips, which are key parts in AI chatbots such as ChatGPT.
Nvidia has major tech companies as clients and acts as a good proxy for whether the tens of billions of dollars invested in AI is paying off.
Its chief executive, Jensen Huang, has been described as the Godfather of AI and watch parties were organised for those looking to follow the Wednesday evening announcement.
The company has been a massive beneficiary of the push to put money into AI, with its share price reaching stratospheric highs.
In October, it became the first worth $5trn (£3.83trn), about the size of the German economy, Europe’s largest, and double the UK’s benchmark stock index, the FTSE 100.
What’s been announced?
Revenue from data centres reached a record high of $51.2bn, more than £10bn higher than the three months previous.
The outlook is for continuing strong sales in the final three months of the financial year, as the company forecasts revenue will be roughly $65bn.
Read more:
Nvidia boss defends against claims of bubble by ‘Big Short’ investor
Inflation slows to 3.6%, but food costs shoot upwards
Demand for Nvidia products continues to surpass expectations, while the business is “still in the early innings” of AI transitions, its chief financial officer…
