The company earned $12.29 billion, compared to a profit of $1.41 billion a year earlier.
Nvidia shares shot up around 7 percent in aftermarket trading. The stock had already increased 40 percent this year, making the company the world’s sixth-most valuable corporation.
Nvidia invested years ago in software and computer chips focused on AI. When the current excitement around the technology took off in late 2022 after OpenAI’s release of ChatGPT, the company was well-positioned to benefit. Its tech is best-suited to run the extremely large computations needed to train AI algorithms, and now Big Tech companies are spending billions to buy its chips to keep up in the AI arms race.
Investors have been closely watching the company, looking for any signs that the roaring growth might slow and that demand for AI chips was peaking. The results suggest that is not happening.
“The market was poised to sell the news following Nvidia’s earnings, given the sky-high expectations,” said Thomas Monteiro, senior analyst at Investing.com. “However, once again, the company left no doubt that the AI boom is much more than just a stock market narrative, but rather, the most significant bet from corporations worldwide at this moment.”
