Jensen Huang says ‘revolution here' as Nvidia ignites $140 billion stock rally. Here's why - Hindustan Times
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Jensen Huang says ‘revolution here' as Nvidia ignites $140 billion stock rally. Here's why

May 23, 2024 08:25 AM IST

Nvidia CEO Jensen Huang said that this is the dawning of a new era as his company's market valuation skyrocketed, topping $2.3 trillion.

Nvidia- the chipmaker at the center of an artificial intelligence (AI) boom, gained after a bullish sales forecast showed that its AI computing spending remains strong. The company reported that its second-quarter revenue will be about $28 billion topping $26.8 billion predicted by analysts. The company's shares have gained 92% this year as the company continues to shatter expectations.

Nvidia CEO Jensen Huangs speaks at the company's office in Santa Clara, California.(AP)
Nvidia CEO Jensen Huangs speaks at the company's office in Santa Clara, California.(AP)

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Nvidia CEO Jensen Huang said that this is the dawning of a new era as his company's market valuation skyrocketed, topping $2.3 trillion. He said, “This is the beginning of a new industrial revolution. This is really exciting.”

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He asserted, “Nobody has ever manufactured supercomputers at volume. We’re doing the best we can.”

In the fiscal first quarter, Nvidia’s revenue more than tripled to $26 billion and the profit was $6.12 a share, it said. The company's shares rose as much as 7.8% in trading on Wednesday, taking them above $1,000 for the first time as the company announced a 10-for-1 stock split and boosted its quarterly dividend by 150% to 10 cents a share.

Read more: Huge payday: Nvidia's Jensen Huang got a 60% hike. How much does he earn?

The company also said that much of is new revenue comes from a small handful of customer- Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and Alphabet Inc.’s Google- who accounted for about 40% of sales. Nvidia’s data-center division generated $22.6 billion of revenue last quarter while gaming chips provided $2.6 billion. 

Read more: Jensen Huang says he does not know how he started Nvidia: Wouldn’t do it again

Moreover, Jensen Huang said that the company’s new chip platform, called Blackwell, is now in full production and lays the groundwork for generative AI that can handle trillions of parameters. He said, “We are poised for our next wave of growth."

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