Nvidia has been public since last millennium, and while the company has consistently managed gradual growth over the past decade-plus, it’s never been an exciting stock to watch or invest in.
The boon of artificial intelligence has changed that.
The chipmaker’s shares have nearly tripled in the past year. Indeed, Nvidia has been the strongest stock in the S&P 500 index during that time. This is because the company has expanded from graphics-processing chips to meet the new demands of computing.
“Nearly every industry and company is awakening to the power of AI,” explains Jensen Huang, Nvidia’s chief executive officer. “Our new Volta GPU, the most complex processor ever built, delivers a 100-fold speed up for deep learning beyond our best GPU of four years ago.”
This week Nvidia announced record quarterly revenue of $2.2 billion, up 56 per cent from a year earlier, and up 15 per cent from the previous quarter. Meanwhile, profit skyrocketed 124 per cent year-over-year.
“This is the era of AI, and the Nvidia GPU has become its brain,” said Huang.
It’s been a magnificent year for his company, but Huang believes Nvidia’s new phase of growth is only just beginning.
“We have incredible opportunities ahead of us,” he said.