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The company’s profit was $12.29 billion, compared with profit of $1.41 billion in the same period last year.
Nvidia shares rose about 7% in aftermarket trading. Its stock price has already risen 40% this year, making it the sixth most valuable company in the world.
Nvidia invested in AI-focused software and computer chips a few years ago. After OpenAI released his ChatGPT, the company was well-positioned to benefit when the current excitement around the technology builds in late 2022. Its technology is perfect for performing the very large calculations needed to train AI algorithms, and Big Tech companies are now bidding in large numbers to buy the company’s chips to stay ahead of the AI arms race. We’re spending billions of dollars.
Investors are watching the company closely for signs that its rapid growth may slow or that demand for AI chips is peaking. The results suggest that’s not happening.
“The market was poised to sell on this news because expectations were so high following Nvidia’s results,” said Thomas Monteiro, senior analyst at Investing.com. “However, the company reiterates that there is no doubt that the AI boom is not just a stock market story, but rather the most important bet made by companies around the world at this time.”
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