- Written by Mariko Oi
- business reporter
image source, Getty Images
Jensen Huang, Co-founder and CEO of Nvidia
The president of Nvidia, the world’s most valuable chipmaker, said artificial intelligence (AI) is at a “tipping point” as the company announced record sales.
Chief executive Jensen Huang’s comments come as the tech giant posted a record quarter in its latest quarter, with sales up 265% year-on-year to $22bn (£17.4bn). It was announced in
It also announced that its overall revenue for the year more than doubled to $60.9 billion.
Nvidia stock rose more than 8.5% in extended trading in New York.
“Accelerated computing and generative AI have reached a tipping point,” Huang said. in a statement.
“Demand is surging around the world, across companies, industries and countries,” he added.
Nvidia also expects quarterly revenue to rise 233% this quarter, beating analyst expectations.
“There was a lot going on this quarter, but they really blew it away,” Bob O’Donnell of Technology Research told the BBC.
“We’re starting to see mainstream use of AI,” he added, emphasizing that AI is no longer just used by specialized technology companies.
In addition to AI chips, the company’s data center sales are also growing rapidly.
The company’s data center business grew more than five times year over year and accounted for the majority of its revenue in the most recent quarter.
However, the company said it faces several challenges, including supply chain constraints.
The United States has also tightened trade restrictions with China, the world’s second-largest economy.
Nvidia’s stock market value rose 225% last year, making it one of the most valuable companies in the United States.