AI chips are hot! Nvidia

On May 24th, global AI computing leader Nvidia released its financial report for the first quarter of the 2024 fiscal year as of April 30th. The company's revenue was 7.192 billion US dollars, a year-on-year decrease of 13%, but a month on month increase of 19%; Net profit was 2.043 billion US dollars, a year-on-year increase of 26% and a month on month increase of 44%. Among them, the sales of chips used in data centers reached a record high of 4.28 billion US dollars, and the revenue of game chips reached 2.24 billion US dollars, both higher than market expectations.

In addition, Nvidia expects its revenue to reach $11 billion in the second quarter, far exceeding analysts' expectations of $7.15 billion.

Nvidia has stated that it will increase its production of AI chips to meet the surge in demand.

The surge in Nvidia's performance has also led to a surge in its stock market value. NVIDIA's stock rose 28% to a historic high of $391.50 after hours. This has increased its stock market value by approximately $200 billion, reaching over $960 billion.

At the performance conference, Nvidia stated that many cloud companies are competing to deploy AI chips. The demand for graphics processing unit (GPU) terminals for personal computers (PCs) remained stable in the first quarter.

According to disclosure, the company has locked in significant growth in data center chips and plans to significantly increase supply in the second half of the year. The company's entire data center product line, including H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU, is significantly increasing supply to meet the surge in demand.

Nvidia founder and CEO Huang Renxun also stated that the computer industry is undergoing two simultaneous transformations - accelerated computing and generative artificial intelligence.