Nvidia has seen a surge in demand for its processors due to the surge in popularity of generative AI, such as OpenAI’s ChatGPT. Just days after CEO Jensen Huang gave a keynote presentation at the Computex event in Taiwan, the tech giant has seen its stock price skyrocket by 27%.
This news comes after a first fiscal quarter ended April 30 report that showed strong revenues of $7.19 billion and a 14% rise in the company’s data center revenue from a year ago. Nvidia’s market cap has now closed in on $1 trillion.
During a post-earnings interview, Jensen Huang spoke confidently about the AI boom and the company’s ability to manufacture products to cater to the increased demand. He also noted that gaming has returned to a quarterly growth, even though it is down compared to the same time last year.
But Huang then made sure to distinguish between AI and the broader economic revival. He noted that while generative AI is doing incredibly well, outside of data centers, growth is still muted, and the spike should be attributed to the return on investment that people now see in AI.
Huang cited accelerated computing as one of the key drivers of success, noting that this is fuelling the growth in generative AI. He also stated that language models are more affordable than expected, with many people mistaking the cost of these large models with the cost of chip development, which stands at several billion dollars.
Given the strong demand for Nvidia’s products, Huang noted that he does not anticipate any major supply shortages in the coming months, with all systems delivering real-time. He noted that the channel inventory correction is behind them and the Ada machine is ramping across the board, introducing a new application for creatives in the form of generative AI.
Nvidia is a leading American technology company based in Santa Clara, California. Founded in 1993, Nvidia produces graphics processing units and other CPUs for the gaming market, data centers, workstations, and other computing applications. It is the leading producer of gaming GPUs and is steadily growing in the AI space.
Jensen Huang is the CEO of Nvidia. He oversaw the company’s transformation from producing gaming processors to becoming a major player in the AI and data center markets. Huang has continually prophesied the rise of AI and predicted its increasing importance in the technology landscape. He is an active speaker and has made several keynote appearances at Computex, Taipei’s largest computing technology event.
