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Nvidia reaches pivotal milestone
(MENAFN) On Friday, Nvidia reached a pivotal milestone, surpassing Apple to secure its position as the world’s most valuable company. This notable transition was primarily driven by a substantial increase in Nvidia's stock price, attributed to a skyrocketing demand for its artificial intelligence (AI) chips used in cutting-edge supercomputing.
Data from the London stock exchanges indicated that Nvidia's market capitalization hit an impressive $3.53 trillion, narrowly surpassing Apple, which was valued at $3.52 trillion. This shift in market dominance underscores the escalating significance and demand for AI technologies in the current economic landscape.
Nvidia's financial results have been remarkable, showcasing the company’s robust performance. For the fourth quarter, Nvidia reported profits of $12.3 billion, significantly boosted by record revenue fueled by the growing demand for its AI-driven chips. In the quarter ending in late January, Nvidia recorded revenues of $22.1 billion, contributing to a remarkable total of $60.9 billion for the entire fiscal year.
A standout aspect of Nvidia's success is its data center computing division, which achieved revenues of $18.4 billion in the latest quarter. This figure represents more than a fourfold increase compared to the same quarter last year, highlighting the rapid expansion of interest in AI-related technologies.
Looking forward, Nvidia anticipates that its total revenue will reach $24 billion in the upcoming quarter, indicating sustained growth. However, Nvidia’s Chief Financial Officer, Colette Kress, has issued a cautionary note to analysts regarding potential obstacles. She highlighted that newly implemented U.S. export controls targeting China and other regions—such as Vietnam and parts of the Middle East—might adversely affect sales of data center chips.
Late last year, the U.S. government announced its plans to tighten restrictions on the export of advanced AI chips to China. This decision reflects the growing acknowledgment of AI’s transformative capabilities, particularly following the debut of ChatGPT, which was released in November 2022. The rapid evolution of AI technologies has spurred increased calls for stricter regulations, highlighting the strategic considerations surrounding AI development and its global implications.
Data from the London stock exchanges indicated that Nvidia's market capitalization hit an impressive $3.53 trillion, narrowly surpassing Apple, which was valued at $3.52 trillion. This shift in market dominance underscores the escalating significance and demand for AI technologies in the current economic landscape.
Nvidia's financial results have been remarkable, showcasing the company’s robust performance. For the fourth quarter, Nvidia reported profits of $12.3 billion, significantly boosted by record revenue fueled by the growing demand for its AI-driven chips. In the quarter ending in late January, Nvidia recorded revenues of $22.1 billion, contributing to a remarkable total of $60.9 billion for the entire fiscal year.
A standout aspect of Nvidia's success is its data center computing division, which achieved revenues of $18.4 billion in the latest quarter. This figure represents more than a fourfold increase compared to the same quarter last year, highlighting the rapid expansion of interest in AI-related technologies.
Looking forward, Nvidia anticipates that its total revenue will reach $24 billion in the upcoming quarter, indicating sustained growth. However, Nvidia’s Chief Financial Officer, Colette Kress, has issued a cautionary note to analysts regarding potential obstacles. She highlighted that newly implemented U.S. export controls targeting China and other regions—such as Vietnam and parts of the Middle East—might adversely affect sales of data center chips.
Late last year, the U.S. government announced its plans to tighten restrictions on the export of advanced AI chips to China. This decision reflects the growing acknowledgment of AI’s transformative capabilities, particularly following the debut of ChatGPT, which was released in November 2022. The rapid evolution of AI technologies has spurred increased calls for stricter regulations, highlighting the strategic considerations surrounding AI development and its global implications.
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