Nvidia, the US-based chip manufacturing company has announced that its revenue for three months to the end of July has reportedly doubled compared to its previous year, achieving a record $30 billion.
This year, the company reportedly saw its shares rise by more than 160 per cent
Nvidia, the US-based chip manufacturing company has announced that its revenue for three months to the end of July has reportedly doubled compared to its previous year, achieving a record $30 billion.
Despite achieving the record in revenues, the firm's shares fell by 6% in New York.
The results of the company which have become a quarterly event usually sends Wall Street into a frenzy of buying and selling shares.
The company has benefitted immensely from the AI boom that has taken over the world. It is driven by its huge expectations to deliver AI chips to the market, as a result of which its valuation surged ninefold within two years. Its stock market value reportedly skyrocketed to $3 trillion.
This year, the company saw its shares rise by more than 160 per cent. Profits for the period also soared high, with the operational income rising 174 per cent from the $18.6 billion achieved last year.
Nvidia has beaten analysts's expectations on both sales and profits for seven consecutive years, as per BBC.
"It’s less about just beating estimates now, markets expect them to be shattered and it’s the scale of the beat today that looks to have disappointed a touch," said Matt Britzman, senior equity analyst at Hargreaves Lansdown as per BBC.
Alvin Nguyen, a senior analyst at Forrester, reportedly told BBC both Nvidia and its executive Jensen Huang have both become "the face of AI".
He reportedly said that this has so far helped the company. However, Nguyen cautioned that it also could hurt its valuation, if it fails to deliver on the high expectations that is expected of it, as millions of dollars have invested.
He further added that Intel could take the AI sway away from Nvidia if it produced better products, which he feels will take time.