Nvidia Shares Soar as AI Chip Demand Grows
On Tuesday, the chipmaker in its earnings reported for the first quarter posted revenue that reached $1.94 billion, which was up more than 48% from the same period one year ago with earnings per share of 79 cents an increase of 126% over last year.
Beating Wall Street estimates, stock at Nvidia was up over 14% during trading after hours. Analysts on Wall Street were expecting revenue of $1.91 billion and per share earnings of 67 cents.
The core gaming at Nvidia ended the quarter with revenue of $1.03 billion, which was up over $687 million from the previous year’s same quarter.
Data center revenue was $409 million compared to $143 million for the same period last year. Automotive went from $113 million a year ago to $140 million.
Last year shares of Nvidia soared on the increased use of its GPU or graphic processing units chip used in deep learning, a form of machine learning that has become popular amongst tech giants that is used in areas such as speech and image recognition.
Stock at Nvidia surged over 200% during 2016.
Nvidia is holding its GPU Technology Conference Wednesday, which it holds annually, where it is expected that the company will unveil additional details related to its next generation graphics architecture known as Volta that will target the deep learning operations.
The largest area of focus for deep learnings lies in the data center. Nvidia has continued to attract big clients with players such as Tencent, Google, Baidu and IBM recently adopting GPUs in their own cloud services.
Deep learning also is on the way to vehicles which will assist with their autonomous features. Nvidia reported recently a partnership with Bosch one of the biggest auto suppliers worldwide as well as with PACCAR a large truck maker.
The current AI revolution is rapidly moving ahead and continues to accelerate, said CEO of Nvidia and its co-founder Jensen Huang in a prepared statement.
Nvidia’s platform of deep learning, GPU is the instrument chosen by internet giants, researchers and startups as they help invent the future.
At this time, Intel a chip rival to Nvidia is attempting to catch it in the AI arena. A year ago it spent over $400 million on Nervana a software and chip startup.