Nvidia has unveiled its latest set. Quarterly financial After the market closes on Wednesday evening. Reading the first paragraph of the press release barely mentions the typical ups and downs of earnings trends. However, NVIDIA stock has generated an incredible amount of interest overnight, with him up nearly 30% in pre-market prices at the time of writing. In fact, Nvidia appears to be on its way to becoming the first semiconductor chip maker with a $1 trillion market cap.
The reason for the Nvidia boom has little or nothing to do with gaming graphics cards, which are very popular among PC enthusiasts and gamers. Rather, rocket fuel here is his Nvidia’s perceived pivotal role in accelerating the AI revolution.
“The computer industry is going through two simultaneous transitions: accelerated computing and generative AI,” said Nvidia founder and CEO Jensen Huang. Huang further predicted that he has $1 trillion worth of data center infrastructure ready for generative AI purposes. Coincidentally, with today’s valuation surge, Nvidia is about to become his first trillion-dollar chip company.
In the chart above, we can see that Nvidia, the PC graphics company that was once much talked about in the data center, is now firmly a data center accelerator company. After a long conception period, this transition plagued the company a lot last year. According to the latest figures, data center revenue was almost double that of the gaming division. Also, looking at changes/trends, we can see positive momentum in segments such as Data Center, Visualization, and Automotive.
In summary, for NVIDIA, it’s that prediction that has captivated investors in the last few hours.Exceeded expectations of sales up about $11 billion plus or minus 2% for the quarter ended 50% improvement Bigger than Wall Street expected.
Broader market impact
Another part of today’s story is the impact Nvidia’s performance has had on the broader chip design and manufacturing landscape. Our headline highlights great news for AMD investors. The red team may not have made their financial announcement yesterday (or today), but AMD’s stock is up nearly 10% before the market. This is a nice bonus to wake up to, and seems to be a boost from his Nvidia who is a perfectly strong rival.
Good news for AI accelerator designers at Nvidia and AMD is also good news for the broader semiconductor business. Both ASML and TSMC Shareholders are in the sympathetic sunshine today. Netherlands-based ASML, a major player in the chip-making equipment business, is up more than 5% at the time of writing. In addition, TSMC, the world’s largest contract chip maker, rose 3.5%. These movements are very violent because the valuations of the stocks of these companies are usually very volatile and have a lot of inertia.
