According to technology major Nvidia, demand for their artificial intelligence (AI) chips has doubled their sales after reaching a record high.
According to the company, their revenue has crossed $13.5 billion (£10.6 billion) in the three months to the end of June.
Nvidia anticipates further sales growth this quarter and outlines a $25 billion stock buyback plan.
During extended trading in New York, shares of the company soared more than 6.5%, giving them huge gains this year.
Nvidia also revealed that they are expecting around $16 billion in revenue for the three months through the end of September.
This is well ahead of Wall Street’s expectations, and compared to the same time last year, their growth was almost 170%.
“A new computing era has arrived,” Nvidia Chief Executive Jensen Huang said in a statement.
He stressed, “Businesses worldwide are shifting to faster computing and generative AI.”
This strong performance was driven primarily by Nvidia’s data center business, which includes AI chips.
Cloud computing service providers and large user Internet companies bought the unit’s next-generation processors, driving its revenue to more than $10.3 billion, up 170% from a year earlier.
This year, Nvidia’s stock market value has crossed $1 trillion, causing their shares to more than triple in value.
It has happened.
This made it join the “trillion dollar club” along with Apple, Microsoft, Alphabet and Amazon, becoming the fifth publicly traded US company.
Sarah Kunst, managing director of startup investor Cleo Capital, made it clear on the BBC’s Today program that she was enthused by Nvidia’s “almost hysteria”.
“They have been manufacturing chips for quite some time, and it’s only recently that the market has truly embraced them,” he stated.
Nvidia originally developed computer chips that were designed to process graphics, especially for computer games.
Their hardware is now used for most AI applications, and according to one report, they have captured 95% of the machine learning market.
ChatGPT, which generates responses in seconds to answer questions like a human, was assembled on a supercomputer that used 10,000 graphics processing units from Nvidia, which belongs to Microsoft.
AI products are anticipated to significantly alter how we interact with computers and their impact on our lives.