NVDA to the moon, soon?
This comes as a result of a massive spike in demand for artificial intelligence (AI) processors. These guys are blowing Wall Street's predictions out of the water, forecasting sales of about $11 billion in the quarter ending in July, crushing the average analyst estimate of $7.18 billion. And here's the kicker - this tidal wave of demand has also juiced the stocks of other chip creators and AI-focused companies.
Our main man at Nvidia, CEO Jensen Huang, has been playing 4D chess, positioning the company as a prime-time player in the AI software training components space. This strategic move has sparked a trillion-dollar upgrade frenzy in data center infrastructure to manage what they're calling 'accelerated computing.'
Even with the tech spending trends taking a bit of a breather, Nvidia's first quarter revenue stomped on estimates, beating them by the largest margin we've seen in half a decade. And the good news just keeps rolling in – the sales forecast for next quarter is a whopping 53% higher than what the pencil-pushers predicted.
Now, let's connect some dots here. This growth spurt suggests Nvidia's supply chain game is strong, pulling in plenty of AI-related chips from manufacturing partners like Taiwan Semiconductor Manufacturing Co. Investors, our eagle-eyed comrades, are starting to see Nvidia as a big-hitter in the AI sector. And why wouldn't they? Nvidia's chips are perfectly designed for training software by absolutely flooding it with data.
Looking back, Nvidia's recent hot streak can be pinned to the massive influx of spending on AI, which has put some serious fuel in their data center unit. There's been a bit of a slump in demand for personal computer components, which has taken a bite out of their graphics chip biz. But overall, their data center sales saw a 14% growth to $4.28 billion, backed by big consumer internet companies and cloud service providers.
Gaming-related revenue also got a nice boost, thanks to the demand for Nvidia's latest beast, the GeForce RTX 40 series products. So, if you're looking to ride the wave in the chip sector, keep your eyes on Nvidia, folks.
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Jet Bomb : this isn't investors, dude... this is market manipulation through political power! they lied on the report with no sales to back their next quarter claim. but you are smart. You can do math.... and not that Obama math either.
SuperMusk Jet Bomb: lie wad report
101785677 SuperMusk: they gave a guidance of 11b revenue next quarter when their revenue is only 7b this quarter. the previous year it was 8b. so they are actually performing worse but came up with some insane guidance number to pump the stock. a more than 50% increase in revenue in 1 quarter. lol
不堪入目lndn 101785677: Isn't that normal
181618156 SuperMusk: NVIDIA chart analysis