Nvidia revealed a bumper second quarter earnings, boosting optimism about AI investment and the wider stock market.
The company’s revenue more than doubled to $30 billion in the last quarter, a rise of 122 percent from the same period last year, beating analysts estimates.
The AI chipmaker has seen a staggering rally in the two years since ChatGPT launched an AI frenzy leaving it with a $3 trillion valuation.
As such, Nvidia’s success has become a bellwether of the ongoing artificial intelligence boom.
Its market capitalization has grown more than nine times over since the end of 2022.
Jensen Huang, CEO of Nvidia, speaks at SIGGRAPH convention in July
Nvidia’s stock has risen more than 162 percent this year making it the second biggest company in the S&P 500, after Apple, meaning any large swings in its stock price effects the wider index.
Its stock growth has driven more than a quarter of the wider S&P’s gains this year.
‘We believe this is the most important earnings report for the stock market this year and potentially in years,’ Dan Ives, an analyst at Wedbush told clients on Wednesday.
Nvidia’s customers include the likes of Meta which is investing heavily into AI products.
By Daily Mail Online, August 28, 2024
