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Nvidia Corp., already the star of the tech industry’s race toward artificial intelligence computing, delivered another stunningly strong quarterly revenue forecast, fueled by surging demand for its AI processors.
Nvidia said sales will be about $16 billion in the three months ending in October.
The outlook underscores Nvidia’s role as the key beneficiary of the AI computing boom.
Faced with skyrocketing demand for chatbots and other tools, data center operators are stocking up on the company’s processors, which are adept at handling the heavy workloads required by artificial intelligence.
That’s helped Nvidia quickly pull out of an industrywide chip slump and accelerate sales growth to its fastest rate in years.
“A new computing era has begun,” Chief Executive Officer Jensen Huang said in a statement. Companies around the world are shifting from a general-purpose approach to one that can handle accelerated computing and ChatGPT-style generative AI, he said.
In the fiscal second quarter, which ended July 30, revenue doubled to $13.5 billion, the Santa Clara, California-based company said. Profit was $2.70 a share, minus certain items. Analysts had predicted sales of about $11 billion and profit of $2.07.
Nvidia became the first-ever semiconductor company to rack up a $1 trillion market valuation after another blowout quarter in May. It has emerged as the main supplier of infrastructure needed to support the growing use of AI systems.