Nvidia surpasses projections, driving up stock value significantly.
Nvidia's estimated net profit for the second quarter is higher than anticipated by analysts, resulting in the company's stock value rising significantly. The demand for AI processors is the main driver for this increased profit.
Nvidia anticipates a revenue of 28 billion dollars in the second quarter with a plus or minus 2% fluctuation, as recently revealed by the chip manufacturer. This figure is greater than the predicted average of 26.66 billion dollars by analysts, based on data from LSEG.
In the first quarter, Nvidia reported a revenue of 26.04 billion dollars, surpassing the analysts' expected revenue of 24.65 billion dollars. The company specializing in semiconductors specifically designed for artificial intelligence applications maintains its successful track record. The share price climbed roughly 4% after hours. TSMC, the world's largest contract manufacturer (including for Nvidia), has previously described the demand for AI processors as "insatiable."
Nvidia's dominance in the AI processor market
Nvidia has met or exceeded analysts' revenue expectations in each of the previous six quarters. By the end of 2023, their revenue had tripled. Experts indicate that Nvidia controls approximately 80% of the global market for advanced AI specialist processors. The most expensive AI chip produced by the company is the "Blackwell B200," estimated to be priced above 20,000 dollars per unit.
Other chip manufacturers, including Intel and AMD, aim to acquire a share of this lucrative market, but have yet to challenge Nvidia's dominance. The same holds true for major tech companies like Apple, which provides iPhones, Meta, Facebook's parent company, and cloud providers such as Amazon and Microsoft.
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Nvidia, as a leading chip manufacturer, continues to dominate the AI processor market. Analysts predict that Nvidia's revenue in the upcoming quarters could further increase, reinforcing its position.
Source: www.ntv.de
