The rising demand for Nvidia's chips coincides with tech giants racing to implement generative AI in their services|NVIDIA Corporation|CC BY-NC-ND 2.0
Chipmaker Nvidia’s shares spiked 24.4% on Thursday following their impressive earnings announcement outlining how the AI boom is driving chip demand.
The company’s earning report projected second-quarter sales of $11 billion, surpassing analysts’ prediction by over 50%.
Nvidia’s stock surge, along with its strong performance this year, is expected to increase value by approximately $190 billion, bringing it close to $945 billion. With a market cap of $939 billion, it’s well on its way to joining the league of companies worth more than $1 trillion, alongside Apple, Microsoft, Alphabet and Amazon.
Why the rise?
The rising demand for Nvidia's chips coincides with tech giants racing to implement generative AI in their services.
Microsoft relies on tens of thousands of Nvidia's A100 chips, priced at $10,000 each, to fuel ChatGPT and other applications.