Demand for AI chips boosted Nvidia profits 580% last year

According to the earnings report released on Wednesday, Nvidia's profits surged to nearly $12.3 billion in the three months ending on January 28, a remarkable increase from $1.4 billion in the same quarter of the previous year. This represents a staggering 769% year-over-year growth, surpassing the expectations of Wall Street analysts. Moreover, the company's full-year profits soared by over 580% compared to the preceding year.

Nvidia also reported a remarkable 265% year-over-year increase in fourth-quarter revenue, surpassing analyst forecasts. The company continues to capitalize on the substantial investment in AI, maintaining its position as a pivotal player in the burgeoning AI landscape.

“Demand is surging worldwide across companies, industries and nations,” CEO Jensen Huang said in a statement Wednesday.

Nvidia's significance in the expanding AI realm cannot be overstated. As an American chipmaker, it leads in the production of processors that drive artificial intelligence systems, including those used in generative AI, a cutting-edge technology capable of creating text, images, and other media.

During the announcement on Wednesday, Nvidia projected revenue for the current quarter to reach around $24 billion, marking a 233% increase from the same quarter a year ago and exceeding the expectations of Wall Street analysts.