Nvidia says growth will continue as AI hits 'tipping point'

Nvidia, leader in AI chips, has released strong quarterly financial results. The company has thrived due to the demand for its specialized and costly semiconductors used in training AI services. Nvidia’s valuation has soared to $1.7 trillion, making it one of the world’s most valuable public companies. In its latest quarter, revenue more than tripled from the previous year, and profit increased almost ninefold. Nvidia predicts continued sales growth with revenue of around $24 billion in the current quarter. CEO Jensen Huang believes the upgrade of data centers for AI is still in its early stages, requiring significant investment. Despite concerns over valuation, analysts acknowledge Nvidia’s strong position in AI. While the availability of Nvidia’s flagship AI chips has improved, the company plans to introduce new products that might face scarcity. Cloud computing giants and rival chipmakers are also developing their own AI chips. Intel, traditionally dominant in microprocessors, is aiming to boost industry capacity for AI chips through manufacturing services. Nvidia faces challenges in China due to restrictions on chip sales. Experts raise concerns about the global rollout of Nvidia’s power-hungry chips and the strain on power grids and budgets. However, Nvidia claims its chips are cost-effective compared to slower standard microprocessors, and faster chips are on the horizon.