UPDATE - US chipmaker Nvidia posts record quarterly revenue of $26B, up 262% from year ago

ADDS MORE INFORMATION, STOCK PRICE, MARKET VALUE

By Ovunc Kutlu

ISTANBUL (AA) - US-based chipmaker Nvidia posted record quarterly revenues due to rising demand for artificial intelligence (AI), according to its financial results statement released late Wednesday.

The California-based company posted record revenue of $26 billion for the first quarter ended April 28, up 262% from almost $7.2 billion in the same period last year.

The company said it also saw record quarterly data center revenue of $22.6 billion, which soared 427% from the same period of 2023.

"Our data center growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform," founder and CEO Jensen Huang said in the statement.

"Beyond cloud service providers, generative AI has expanded to consumer internet companies and enterprise, sovereign AI, automotive and health care customers, creating multiple multibillion-dollar vertical markets," he added.

Net income, meanwhile, soared a massive 628% to almost $14.9 billion in the first quarter from approximately $2 billion in the same period last year.

The record financial results came as demand for AI is booming globally and Nvidia is increasing its collaborations with major tech companies.

Nvidia announced Tuesday new AI performance optimizations and integrations for Microsoft's Windows operating system that help deliver maximum performance.

The collaboration will help developers build and deploy AI applications faster, while the integrated solutions with Microsoft Azure and Windows PCs will simplify AI model deployment and optimize route mapping and app performance, Nvidia said Tuesday in a statement.

Nvidia-powered systems, in addition, swept the top three spots and took seven of the top 10 rankings of the world’s most energy-efficient supercomputers, known as the Green500, according to the company.

"The strong showing demonstrates how accelerated computing represents the most energy-efficient method for high-performance computing," the firm said Tuesday in a separate statement. "The ability to do more work using less power is driving the construction of more Grace Hopper supercomputers around the world."

With the strong financial results, Nvidia shares jumped 7.2% to a record $1,018 per share on the Nasdaq in after-hours trading after closing Wednesday at $949.50 a share.

Nvidia's market value topped $2 trillion on Feb. 23, surpassing Amazon and Alphabet, Google’s parent company, to become the third-most valuable publicly traded company in the US.

Its market value stood at $2.34 trillion at Wednesday's close, trailing Apple at $2.93 trillion and Microsoft with $3.2 trillion.