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NVIDIA Revenue Beats Estimates, Announces 'Turning Point' in the World of Computing and Artificial Intelligence

Achieve NVIDIA shares Up 8% to $728.35 from $674.72 in after-market trading last Wednesday after reporting better-than-expected fourth-quarter business results that made headlines due to huge growth in artificial intelligence.

The hardware developer reported revenue of $22.1 billion in the fourth quarter ended Jan. 28, 2024, up 22% from the prior quarter and 265% from the prior year. Market watchers had expected growth of 208% ahead of the earnings report, according to Reuters.

"Accelerated computing and generative AI have reached an inflection point. Demand is growing globally across all companies, industries and countries," Jensen Huang, founder and CEO of NVIDIA, said in the report.

Following NVIDIA's earnings news, prices of other artificial intelligence-related stocks rose, including Super Micro Computer, which rose 6%, Advanced Micro Devices, which rose 3%, and chip maker Broadcom, which rose 3%. 2%, reports Reuters.

The growth of cryptocurrencies is associated with artificial intelligence

Following Nvidia's report, prices for artificial intelligence-related tokens and cryptocurrencies increased. Fetch.Ai icon has grown (field-effect transistor) is currently $1.13, up 3.49%; And the SingularityNET token is growing AGICS to $0.66, an increase of 13.30%; Optimus AI token (OPTI) rose to $0.32, up 0.70% over the past hour, according to CoinMarketCap.
The Sora token, inspired by but not related to OpenAI's controversial new video generator, is up 9.22% in the past hour to $0.000000368.

Optimistic outlook for the future

Last year, NVIDIA reported total revenue of $13.5 billion in the second quarter of its fiscal year. However, this represents growth of 101% compared to the same quarter in 2022.

Then Jensen Huang said: “A new era of computing has begun.” “Companies around the world are moving from general computing to accelerated computing and generative artificial intelligence.”

NVIDIA attributed the rise in its record profits to increased demand for artificial intelligence, faster data processing and training. The finding applies to cloud providers, enterprise software companies and consumer Internet companies.

NVIDIA's hardware division is also seeing increased demand for artificial intelligence. Developers have turned to the company's graphics processing units (GPUs) to run their projects. “Introduced less than six years ago,” Huang said, “NVIDIA RTX technology is now a massive PC platform for generative AI.”

NVIDIA has been in the news for the past day. The company has become one of the biggest beneficiaries of the growing hype around artificial intelligence. This sent its share price to a record high, pushing the company's market value past one trillion dollars. And become one of the largest companies in the world.

Comparative chart of NVIDIA price and Bitcoin (BTC) price.
Comparative chart of NVIDIA price and Bitcoin (BTC) price.

To give a rough idea of ​​the strength of Nvidia's share price rally, let's compare its performance with... Bitcoin price BTC.

From the beginning of October 2022, that is, a month before the launch of the ChatGPT program, which launched artificial intelligence. Nvidia's share price is up about 455% compared to Bitcoin's 165% rise.

That is, the company’s price exceeded the leading digital currency by approximately two times. It looks like this dynamic will not end any time soon.

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