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Nvidia, Leading AI Chip Manufacturer, Witnesses Over 100% Growth in Sales

Nvidia, a prominent technology company, has achieved record-breaking sales by more than doubling its revenue due to the surging demand for its artificial intelligence (AI) chips. The company reported revenue exceeding $13.5 billion (£10.6 billion) for the three months leading up to June. Furthermore, Nvidia anticipates a continued surge in sales during the present quarter and plans to repurchase $25 billion worth of its own stock.

In New York’s extended trading, Nvidia’s stock saw a boost of over 6.5%, adding to its substantial gains throughout the year. The company has also projected revenue of approximately $16 billion for the three months ending in September. This estimate significantly exceeds Wall Street’s predictions and translates to an impressive rise of about 170% in comparison to the same period last year.

Jensen Huang, Nvidia’s CEO, declared the dawn of a new computing era, emphasizing the global shift towards accelerated computing and generative AI among various companies. The standout performance was primarily driven by Nvidia’s data center division, which encompasses AI chips. The unit’s revenue exceeded $10.3 billion, marking a remarkable surge of over 170% from the previous year. This growth was attributed to the adoption of its next-generation processors by cloud computing service providers and major consumer internet companies.

Nvidia’s market value has soared to over $1 trillion this year, with its shares more than tripling in value. This accomplishment propelled Nvidia into the “Trillion Dollar Club,” joining the ranks of publicly traded US giants like Apple, Microsoft, Alphabet, and Amazon.

The increasing fascination with Nvidia’s success has been noted by experts. The company, previously recognized for producing graphics processing units for computer games, has now become a foundational player in the AI domain. It is reported that Nvidia’s hardware underpins the majority of AI applications, with an estimated 95% share in the machine learning market. Notably, technologies like ChatGPT, which relies on Nvidia’s graphics processing units for its training, are anticipated to reshape how computers are used and their role in society.

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