2023-08-24 14:38:58
Semiconductor maker Nvidia surged in the stock market on the 24th, setting a record high since its listing. The company, which is at the forefront of the race to develop artificial intelligence (AI), yesterday announced sales forecasts that beat Wall Street expectations for the third straight quarter.
The stock price rose more than 6% at one point to $502.66. The company announced that it expects sales for the period from August to October to be approximately $16 billion (approximately ¥2.32 trillion). That surpassed analyst estimates of $12.5 billion in a Bloomberg survey. Earnings for the second quarter (May-July) also exceeded market expectations. The company has approved a new $25 billion share buyback.
Nvidia’s earnings outlook highlights that the company is a major beneficiary of the AI boom. Demand for chatbots and other tools has surged, prompting data center operators to aggressively buy the company’s products for the heavy-duty processing required by AI. That’s why Nvidia emerged quickly from the global semiconductor slump and is growing sales at the fastest pace in years.
“A new era of computing has begun,” CEO Jensen Huang said in a statement Wednesday. He sees companies around the world shifting away from general-purpose approaches to accelerated computing and generative AI like ChatGPT. Ta.
Nvidia stock has more than tripled this year. The stock closed at $471.16 in regular trading before the earnings release.
Nvidia’s Data Center Unit Takes Off
In less than a decade, it’s gone from a rounding error to main source of sales
Source: Company data compiled by Bloomberg
Original title:Nvidia Soars to Record High as AI Demand Fuels Blowout Forecast(excerpt)
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