Nvidia posts record profit and revenue amid AI chip boom
Summary
Nvidia reported record earnings with a 37% rise in profit and 20% increase in revenue from the previous quarter, driven mainly by strong sales of AI-related chips. The company announced a large share buyback and increased its dividend for shareholders as its AI technology continues to grow in demand.Key Facts
- Nvidia's profit reached $58.3 billion for the February-April quarter, up 37% from the previous quarter and over 200% higher than the previous year.
- Revenue rose to $81.6 billion, a 20% increase from the last quarter and 85% higher than the same period last year.
- The data-center business, focused on AI chips, accounted for most growth with revenue up 92% year-over-year to $75.2 billion.
- The hardware segment earned $6.4 billion, up 29% from the prior year.
- Nvidia announced it will buy back $80 billion worth of its shares and raised its quarterly dividend from $0.01 to $0.25 per share.
- CEO Jensen Huang said demand for AI chips is growing rapidly due to new AI technologies that can perform useful tasks.
- Despite strong results, Nvidia's stock fell slightly after hours, reflecting very high market expectations.
- Experts say Nvidia is now setting the standard for growth in the tech sector, and the company is entering a more mature phase with increased dividends and buybacks.
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