Nvidia (NVDA) is now a trillion-dollar company.
It’s now the ninth chipmaker to hit the trillion-dollar mark, and now joins the ranks of Microsoft, Alphabet, Amazon, and Apple.
All thanks to the artificial intelligence boom.
Helping, the company just blew the doors off earnings. In fact, just last week, the company posted quarterly earnings, with top and bottom lines well above expectations. Q1 EPS of $1.09 was a beat by 17 cents. Revenue of $7.19 billion beat by $670 million. It even saw record data center revenue of $4.28 billion.
Even better, “The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA. “A trillion dollars of installed global data center infrastructure will transition from general-purpose to accelerated computing as companies race to apply generative AI into every product, service, and business process.
Better, there are no signs the AI boom will slow any time soon.
For one, “There’s a war going on out there in AI, and Nvidia today is the only arms dealer out there. So, as a result we’re seeing this huge jump in revenues,” Raymond James managing director Srini Pajjuri said, as quoted by Yahoo Finance.
Two, AI is changing everything about everything, creating a potential $1.81 trillion opportunity by 2030, according to Grand View Research. Three, “Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture.
Four, any company involved with the AI boom could see higher highs.
That includes industry leader Nvidia, which last traded at $400.09 on a volume spike to 82.5 million shares. Average daily volume is 45.9 million.
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