Nvidia profit up 843% thanks to AI boom

Nvidia CEO and co-founder Jensen Huang says «a new era of computing has begun»; Credit: SAM YE

A Silicon Valley chip maker at the heart of the new artificial intelligence (AI) boom saw an 843% increase in profits as the world rushed to buy its technology.

Nvidia increased its net income to $6.2 billion (£4.9 billion) in the three months to July 30, up from $656 million recorded in the same period last year.

Biggest in globally, the chipmaker continues to benefit from growing demand for processors capable of powering AI bots such as ChatGPT.

This comes as the United States is considering further limiting the supply of Nvidia microchips to China using the technology. is quickly becoming the subject of heated debate as the world's superpowers vie for competitive advantage in the AI ​​race.

Commenting on the latest results, CEO and co-founder Jensen Huang said: Generative AI.»

According to The US tech giant also doubled year-over-year sales to $13.5 billion in the second quarter of 2023, according to results released Wednesday night.

Nvidia shares rose nearly 10% in extended trading after the company raised its current quarter sales forecast to $16 billion.

The microchip maker also approved another $25 billion share buyback after buying back from investors in the second quarter $3.3 billion

This comes after Nvidia became the world's first semiconductor company to hit a $1 trillion market valuation in May, joining the ranks of tech giants Apple, Microsoft and Amazon.

Since founding Nvidia in 1993, Mr. Huang has led the group from making processors used to create 3D graphics in video games to dominating the AI ​​hardware market.

Nvidia said its processor The envelope-sized H100 is the world's first computer chip designed for the fast data processing required for generative artificial intelligence, the sophisticated technology behind ChatGPT.

High demand and limited supply have pushed up the price of the chips Nvidia has grown to hundreds of millions of dollars, leaving tech giants and nation states scrambling to buy the chips. wholesale.

The White House is reportedly considering additional export bans on Nvidia microchips to China due to national security concerns.

However, Colette Kress, Nvidia's chief financial officer, warned on Wednesday. that further restrictions would result in «an irretrievable loss of the ability of American industry to compete and lead in one of the largest markets in the world.»