Nvidia, the fifth most valuable US company, on Wednesday projected quarterly revenue more than 50% above Wall Street’s median estimate and said it would have more supply of AI chips available in the second half to cope with a surge of the demand.
Its chief executive, Jensen Huang, said current data center equipment worth $1 trillion will have to be replaced with AI chips as generative AI applies to all products and services.
The results bode well for big tech companies, which have been targeting AI in the hopes the technology will help them attract demand at a time when their profit engines, digital advertising and cloud computing, They are under pressure from a weak economy.
“This forecast from Nvidia changes the entire narrative around AI and demand going forward in the enterprise. A historic tipping point in the AI revolution may come, with Nvidia as a key barometer,” he said. Dan Ives of Wedbush.
With information from Reuters and Bloomberg.