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Nov. 21, 2024, 12:49 a.m.
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Nvidia Surpasses Apple: A New Era in A.I. Tech Dominance

Nvidia, a leader in the market for A. I. computer chips, has become a sensation on Wall Street. Over the past year, it increased its market value by $2. 5 trillion, overtaking Apple as the most valuable tech company globally. However, questions linger about the longevity of Nvidia's success. On Wednesday, Nvidia demonstrated that the growing demand for A. I. technology could propel its business to greater heights. As an industry leader in A. I. , the company exceeded Wall Street’s expectations for the quarter, reporting a 94 percent revenue increase and a 106 percent profit rise compared to the previous year. Nvidia forecasted a 70 percent revenue rise for the current quarter, reaching $37. 5 billion, as it began selling Blackwell, a more powerful A. I. chip.

This projection surpassed Wall Street’s estimate by about $500 million, indicating strong customer interest in the new chip. In the last quarter, revenue hit $35. 08 billion, exceeding the company’s August estimate of $32. 5 billion. Net income rose to $19. 04 billion from $9. 24 billion a year ago, outperforming the quarterly profits of Amazon and Meta. Nvidia’s shares dipped 1 percent in after-hours trading, partly due to supply constraints on the new chip affecting the sales outlook. The company noted it would take several quarters to meet demand for Blackwell chips. Already a subscriber?Log in. If you want access to all of The Times, consider subscribing. Thank you for your patience as we verify access. If you are in Reader mode, please exit and log into your Times account, or subscribe for full access.



Brief news summary

Nvidia has recently surpassed Apple to become the most valuable tech company on Wall Street, thanks to a remarkable $2.5 trillion increase in market value over the past year. This surge is largely attributed to Nvidia's leadership in the AI chip sector, although it raises questions about the durability of its success. In its latest quarterly results, Nvidia exceeded Wall Street's expectations, with a 94% increase in revenue and a 106% rise in profits from the previous year. The company reported $35.08 billion in revenue and $19.04 billion in net income, outperforming major tech firms like Amazon and Meta. For the current quarter, Nvidia anticipates a 70% revenue boost to $37.5 billion, driven by its new Blackwell AI chip, surpassing analysts' predictions by $500 million. Despite these optimistic projections, Nvidia's stock declined by 1% in after-hours trading due to expected supply constraints for the Blackwell chip, which the company estimates will take several quarters to resolve fully.

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