Nvidia has led the artificial intelligence boom, becoming one of the largest companies on the stock market as tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems.
LOS ANGELES — LOS ANGELES (AP) —
Nvidia has been leading the charge artificial intelligence boom to become one of the largest stock markets largest companiesas tech giants continue to spend big on the company’s chips and data centers needed to train and operate their AI systems. The company is now worth more than $3 trillionwith its dominant position as a chipmaker cementing Nvidia’s position as the figurehead of the AI industry ahead of the release of its latest financial results on Wednesday.
Wall Street expects the company to report adjusted earnings of 65 cents a share for the second quarter on revenue of $28.74 billion, more than double what it earned in the comparable quarter a year ago, according to FactSet. Revenue has more than tripled year-over-year over the past three quarters, with the vast majority of the growth coming from its data center business.
Demand for generative AI products that can compose documents, create images and act as personal assistants has boosted sales of Nvidia’s specialized chips over the past year. But Wall Street has also been looking for signs that AI demand is slowing.
The Santa Clara, California-based company gained an early lead in the race for AI applications thanks in part to founder and CEO Jensen Huang’s successful bet on the chip technology that was driving the industry. The company is no stranger to big bets. Nvidia’s invention of the graphics processing unit, or GPU, in 1999 helped fuel the growth of the PC gaming market and redefined computer graphics.
Nvidia will report its quarterly results on Wednesday after the market closes.