AI is ready to go mainstream, Nvidia tells investors

Nvidia Corp., facing more investor scepticism, used its latest quarterly report to tout progress in diversifying the company, which aims to rely less on the giant datacentre operators that have fuelled its runaway growth.

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Nvidia, facing more investor scepticism, used its latest quarterly results to progress in diversifying the company.

(AP)

Though spending has continued to surge from large data centre clients—a group known as hyperscalers—Nvidia predicted that a vast array of other businesses and governments would soon become a bigger source of revenue. They're poised to snap up Nvidia’s chips and other computing products to support their own artificial intelligence (AI) ambitions.

Down the road, so-called physical AI will bring a colossal new opportunity in the form of robots and automated vehicles, chief executive officer Jensen Huang said on a conference call with analysts. “We've got it all covered,” he said.

But investors have become harder to impress. Even after the company beat analysts’ estimates with its results and forecast, the shares were little changed after markets opened in New York on Thursday. Shareholders weren't swayed by an expansion of investor rewards, including a massive increase to the company’s dividend.