Chipmaker Nvidia released a quarterly earnings report after the close of trading on Wednesday showing $30 billion in revenue, up 15% from the previous quarter.
Wall Street has been keeping an eye on Nvidia to gauge the sustainability of new tech and AI initiatives.
Nvidia has already climbed 122% from a year ago. At one point this year it was valued at over $3 trillion. Now the question is if it can keep soaring.
The earnings reported Wednesday represent more than double the revenue Nvidia saw last year, and roughly five times what it was in the months before the AI text program ChatGPT kicked off a new surge in AI development.
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Nvidia said Wednesday it planned to ship out billions of dollars worth of next-generation AI-capable chips by the end of the year. Nvidia says the chips, which were delayed in early August until the fourth quarter of this year, will be even better at handling the heavy workloads of AI processing and quantum computing.
Shares sank nearly 4% after hours, but analysts are still confident that the company's momentum will keep up.
“This is the most watched earnings — not just in tech, but in the market, in many years,” Wedbush Securities analyst Dan Ives told The Associated Press. “Investors will initially overreact to any sort of short-lived weakness. But I believe this actually put more fuel into the tank of the bull market.”
