June 15th, 2024

Nvidia’s profit soars, underscoring its dominance in chips for artificial intelligence

By The Associated Press on May 22, 2024.

SAN FRANCISCO (AP) – Nvidia on Wednesday overshot Wall Street estimates as its profit skyrocketed, bolstered by the chip-making dominance that has made the company an icon of the artificial intelligence boom.

Its net income rose more than sevenfold compared to a year earlier, jumping to $14.88 billion in the first quarter from $2.04 billion a year earlier. Revenue more than tripled, rising to $26.04 billion from $7.19 billion in the previous year.

The company, based in Santa Clara, California, carved out an early lead in the hardware and software needed to tailor its technology to AI applications, partly because founder and CEO Jensen Huang began to nudge the company into what was then seen as a still half-baked technology more than a decade ago. It also makes chips for gaming and cars.

The company’s stock has grown into the third largest on Wall Street, making it one of the most influential stocks in the market.

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