Nvidia posts record profit as a new computer era begins

According to Nvidia’s results for the company’s second quarter of fiscal 2024, EPS stood at $2.70 as revenue more than doubled from a year earlier to $13.5 billion. CEO Jensen Huang attributed the results to a sharp shift toward AI deployment.

Key metrics significantly exceeded analysts’ expectations of $2.05 and $11.2 billion.

Analysts’ forecasts for revenue in the next three months were also too conservative — $12.6 billion versus $16 billion. In the current quarter the metric rose 88% QoQ and 101% YoY.

“A new computer era has begun. Companies worldwide are shifting from general-purpose to high-performance computing and generative AI. The race to deploy is on,” Huang explained the results.

According to the executive, during the quarter the biggest cloud-service providers and enterprise IT systems and software vendors announced major investments in AI infrastructure.

At the conference with analysts CFO Colette Kress promised, that Nvidia would increase product shipments “in the coming quarters.”

The positive Wall Street reaction to the GPU maker’s results sparked a fresh surge of enthusiasm around AI, which spilled over to AI-related tokens. The rise at one point ranged from 2% to 7%.

Following profit-taking in Nvidia shares, prices of FET, GRT, INJ and RNDR tokens retraced some of their gains. As of writing, daily losses ranged from 3.7% to 5.5%.

Britain’s authorities will allocate 100 million GBP (~$130 million) to purchase AI-processing chips used to handle AI tasks.

Earlier, Intel CEO Pat Gelsinger said the plan to embed AI in every product created by the company.