Nvidia's recent achievement of reaching a $2 trillion market cap at an accelerated pace compared to both Apple and Microsoft underscores its exceptional standing as a leader in the artificial intelligence (AI) boom. In the Q4 report, released on a recent Wednesday, Nvidia showed unprecedented performance that sets it apart from its industry peers. The revenue for the latest quarter, concluding in January, witnessed an extraordinary 265% year-over-year surge, reaching an impressive $22.1 billion.- Chart from Barron’s
What is particularly noteworthy is the outstanding growth in Nvidia's data-center business, which is predominantly propelled by the soaring demand for AI chips. This segment experienced an astounding 409% increase from the previous year, culminating in a substantial $18.4 billion. The company's guidance for the current quarter is equally robust, with a projected revenue range of $24 billion at the midpoint. This forecast significantly surpasses the Wall Street consensus of $22.2 billion, suggesting another remarkable 234% growth in revenue for the ongoing quarter.
In comparison, the six other major technology giants demonstrated revenue growth rates averaging in the mid-teens year-over-year. This spectrum ranged from a modest 2% for Apple on the lower end to an impressive 25% for Meta Platforms on the higher end. Meanwhile, Nvidia's primary chip rivals, Advanced Micro Devices (AMD) and Intel, experienced a more moderate 10% growth in revenue.
Nvidia's extraordinary trajectory in the market, driven by its prowess in AI technology, sets it apart as a formidable force in the tech industry, leaving a significant mark in the rapidly evolving landscape of artificial intelligence.
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