Nvidia’s Quarterly Sales Double Thanks to AI Boom

Nvidia, the world’s leading chipmaker, is having a storming year, largely thanks to the growing interest in artificial intelligence (AI). After announcing a sales increase of 101% from the previous year, reaching $13.5 billion for the quarter that ended in July, the company's stock surged by 9% in after-hours trading on Wednesday.

While Wall Street analysts had predicted good things for Nvidia, expecting a revenue of $11.2 billion, the company managed to outdo these estimates. Its adjusted profits also increased, going up by an eye-catching 429% from last year to $2.70 per share, which was higher than what most experts expected.

Looking ahead, Nvidia believes its next quarter will be even better, hoping for revenues of around $16 billion.

Since the start of the year, Nvidia's stock has grown by over 220%. This growth reflects the frenzied demand for AI technology. Nvidia is known for making processors that support AI tech, which requires high-performing chips to produce text and pictures. One of the popular services that use this tech is ChatGPT.

In other news, Nvidia shared plans for a $25 billion share buyback. Such a move often suggests that a company believes its stock price is undervalued.

As more companies start using advanced AI tech, Nvidia is making more chips to keep up with the high demand. Now, analysts are watching to see if Nvidia can keep beating the already high expectations in the future.