Nvidia’s stock has risen as demand grows for its products that use powerful artificial intelligence (AI) techniques.
While there are no “pure play” AI stocks, Nvidia has become one of the leaders in the industry while having other business lines.
As of Wednesday’s closing, Nvidia stock has risen 113% year-to-date, outperforming Google and Microsoft, which have grown 30%. Nvidia’s share price rose as much as 28% in after-hours trading Wednesday following its earnings call, making it the world’s most valuable chipmaker and Wall Street’s fifth most valuable firm.
The spectacular earnings announcement boosted Nvidia shares by 28% in after-hours trading.
“Generative AI is driving exponential growth in compute requirements and a fast transition to Nvidia accelerated computing, which is the most versatile, most energy efficient, and the lowest [total cost of ownership] approach to train and deploy AI,” said Nvidia CFO and executive vice president Colette Kress.
“Generative AI drove significant upside in demand for our products, creating opportunities and broad-based global growth across all markets.”
Nvidia makes semiconductors, high-end GPUs, and APIs for supercomputers and machine learning applications. GPUs and APIs are used to train machine-learning models, which demand powerful transistors to analyze massive amounts of data.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 305.38 | -1.50 | -0.49% |
| MSFT | MICROSOFT CORP. | 313.85 | -1.41 | -0.45% |
| GOOGL | ALPHABET INC. | 120.90 | -1.66 | -1.35% |
| ORCL | ORACLE CORP. | 98.31 | -0.23 | -0.23% |
“Generative AI pioneers” are driving “strong demand” for Nvidia’s solutions at Google Cloud, Oracle Cloud, and Microsoft Azure, Kress said.
Enterprises want AI and quicker computing. “AI and accelerated computing are quickly becoming integral to customers’ innovation roadmaps and competitive positioning in verticals like automotive, financial services, and telecom,” Kress added.
Nvidia AI Enterprise includes over 100 frameworks, pre-trained models, and development tools to accelerate data science and AI model development.
She said Bloomberg is utilizing Nvidia technologies for a 50 billion parameter model and AT&T is “working with us on AI to improve fleet dispatches so their field technicians can better serve customers.”
Microsoft and Nvidia will incorporate enterprise-ready AI capabilities into Azure Machine Learning to enable Azure users quickly design and deploy unique applications.
“Our collaboration with Microsoft transformed Windows into the ideal platform for creators and designers harnessing generative AI to elevate their creativity and productivity,” Kress said.
