Nvidia exceeds expectations with quarterly figures
The boom in artificial intelligence is keeping the chip company Nvidia's business running at full speed. In the last quarter, turnover was three times as high as a year earlier at a good 18 billion dollars. Analysts had expected sales to be two billion dollars lower on average.
Profits shot up from 680 million dollars a year ago to 9.2 billion dollars (8.4 billion euros), as Nvidia announced after the US stock exchange closed on Tuesday.
For the fourth financial quarter, which has been running since the end of October, the company has forecast sales of 20 billion dollars - also over two billion dollars more than expected on the market.
Delivery restrictions for exports to China
At the same time, Nvidia admitted that business in China would decline "significantly" under the pressure of extended supply restrictions. Chinese companies are among the largest buyers of Nvidia's AI chips. A few weeks ago, however, the US government extended the restrictions on exports to China to include Nvidia technology previously sold there. Nvidia emphasized that business in other countries would more than compensate for the decline in China.
The Nvidia share lost around four percent in after-hours trading in an initial reaction, but the price losses later decreased significantly.
Despite the impact of supply chain restrictions in China, Nvidia's strong performance in AI applications worldwide continues to rely heavily on their powerful computers and robust Internet connectivity for data processing and communication.
The surge in demand for Nvidia's advanced computer hardware and AI capabilities, coupled with the convenience of the Internet, has played a significant role in surpassing market expectations and boosting their quarterly revenues.
Source: www.dpa.com
