Nvidia delivers on Al hype, igniting 189b stock rally

Chipmaker’s bullish sales forecast cements its status as top beneficiary of Al spending

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SAN FRANCISCO - Nvidia, the chipmaker at the centre of an artificial intelligence boom, gave another bullish sales forecast, showing that AI computing spending remains strong.

Second-quarter revenue will be about US$28 billion (S$37.8 billion), the company said on May 22, topping the US$26.8 billion predicted by analysts. Results in the fiscal first quarter, which ended on April 28, also beat projections lifted by growth in Nvidia's data centre division.

The big question heading into the earnings report was whether Nvidia's latest numbers could justify the dizzying run-up in its stock. The shares have gained 92 per cent in 2024 through May 22's close, fuelled by investor hopes that the company would continue to shatter expectations.

The report did not disappoint, and chief executive Jensen Huang stoked the excitement by talking about the dawning of a new era.

"This is the beginning of a new industrial revolution," he said in an interview, echoing one of his favourite themes. "This is really exciting." The upbeat outlook reinforces Nvidia's status as the biggest beneficiary of AI spending. The company's so-called AI accelerators chips that help data centres develop chatbots and other cuttingedge tools have become a hot commodity in the past two years, sending its sales soaring. Nvidia's market valuation has skyrocketed as well, topping US$2.3 trillion.