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Aug. 24 (UPI) — Chipmaker Nvidia made a groundbreaking announcement on Thursday, revealing that its second-quarter profits more than doubled compared to the same period last year.
Founder and CEO Jensen Huang declared, “We are witnessing the beginning of a new era in computing. Companies worldwide are transitioning to accelerated computing and generative AI.”
Nvidia’s shares on the New York Stock Exchange saw a 5% increase in pre-market activity, surpassing $500. The company reported earnings of $13.51 billion for the three-month period in July, an 88% rise from the first quarter and a remarkable 101% increase from the previous year.
Emphasizing the growing adoption of artificial intelligence (AI), Huang revealed that cloud-service providers have shown significant interest in Nvidia’s AI infrastructure. Additionally, prominent technology and software companies have expressed their intention to utilize Nvidia’s AI platforms across various industries.
Huang proclaimed, “The pursuit of generative AI has begun.” Looking ahead, Nvidia anticipates further revenue growth, expecting to reach $16 billion in the third quarter, an increase of 18%.
The field of artificial intelligence is rapidly advancing. Initial results from clinical trials indicate the safe use of AI programs in assisting radiologists with mammogram image analysis and breast cancer detection. However, AI has also raised concerns among actors and writers, who fear it may replace their talents in fields such as imaging and writing.
Meanwhile, following President Joe Biden’s executive order on August 9, which restricts the export of computer tech to “countries of concern,” the Treasury Department conveyed that China is exploiting U.S. investments to enhance its military technologies.
In the context of these restrictions, Nvidia’s Chief Financial Officer Colette Kress assured investors that the company’s performance would not be immediately impacted. However, she noted that over the long term, preventing the sale of their data center graphics processing units (GPUs) to China could result in a permanent loss of opportunities for the U.S. industry to compete and lead in one of the world’s largest markets.
