Nvidia’s AI Accelerators Propel Company’s Stock Value to Nearly a Trillion Dollars

Almost a trillion company: AI accelerators make Nvidia's shares explode

In a surprising turn of events, Nvidia’s annual report for the fiscal quarter from February to April 2023 exceeded expectations, with a turnover of $7.19 billion USD which is 11 percent more than anticipated.

The revenue was driven mainly by the company’s data center group, which includes GPU accelerators such as H100 and A100, which are currently in high demand among hyperscalers to train neural networks. Major corporations such as Microsoft, Google, and Meta have announced the construction of supercomputers featuring Nvidia’s GPUs. The data center group generated over $4.28 billion USD, the highest figure ever seen by the group.

While the gaming division was Nvidia’s primary driving force until 2021, sales of $2.24 billion in the current quarter place it far behind the data center group. Nonetheless, the gaming division has seen a slow recovery as the first GeForce graphics cards of the RTX 4000 series have become available and subsequently become cheaper.

Nvidia’s professional visualization and automotive groups yielded sales in the low three-digit million range. The company’s overall sales dropped by 13 percent YoY, but due to the failed ARM takeover, their net profit rose by 26 percent to over $2 billion USD, driven by a gross margin of 64.6 percent and an operating profit of $2.14 billion USD, 70 percent higher than the previous quarter.

For the current quarter, Nvidia anticipates a record-breaking turnover of $11 billion USD, with rumors circulating that their production with chip order manufacturer, TSMC, will shift towards AI accelerators. This positive expectation has caused Nvidia’s shares to increase by 25 percent in after-hours trading, bringing their market capitalization to a trillion.

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