Nvidia exceeded Wall Street expectations with a significant increase in profit driven by its dominance in chipmaking, particularly in the artificial intelligence (AI) sector, Associated Press reports.
The company reported a more than sevenfold rise in net income, reaching $14.88 billion in the first quarter, while revenue more than tripled to $26.04 billion compared to the previous year. CEO Jensen Huang proclaimed the onset of a new industrial revolution, foreseeing the emergence of “AI factories” powered by Nvidia chips. The company’s earnings per share surpassed analysts’ estimates, leading to a 6% increase in its stock price during after-hours trading.
Nvidia’s success stems from its early investment in AI technology, positioning it as a leader in hardware and software development tailored for AI applications. However, analysts caution that the intense competition in the AI chip market may challenge Nvidia’s dominance in the future, particularly as AI workloads transition from training to inference.
