Nvidia revenue more than triples as AI 'hits tipping point'

CEO says demand for its chips will continue to grow, thanks to generative Al boom

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SAN FRANCISCO - Nvidia, the kingpin of chips powering artificial intelligence, released quarterly financial results that reinforced how the company has become one of the biggest winners of the AI boom, and it said demand for its products would fuel continued sales growth.

The Silicon Valley chipmaker has been on an extraordinary rise over the past 18 months, driven by demand for its specialised and costly semiconductors, which are used for training popular AI services like OpenAI's ChatGPT chatbot. Nvidia has become known as one of the "Magnificent Seven" tech stocks, which along with others like Amazon, Apple and Microsoft have helped power the stock market.

Nvidia's valuation has surged more than 40 per cent to US$1.7 trillion (S$2.3 trillion) since the start of 2024, turning it into one of the world's most valuable public companies.

Last week, the company briefly eclipsed the market values of Amazon and Alphabet before receding to the fifth-most-valuable tech company. Its stock market gains are largely a result of repeatedly exceeding analysts' expectations for growth, a feat that is becoming more difficult as they keep raising their predictions.