Nvidia stock surges to highest ever as AI boom rolls on
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Nvidia stock surges to highest ever as AI boom rolls on

SAN FRANCISCO — Artificial intelligence chip company Nvidia’s stock shot up after it reported second quarter revenue came in higher than analysts expected — signs the AI boom is far from slowing down.

The company’s stock gained nearly 8 percent in aftermarket trading, pushing its stock price to $508.50, its highest ever. The jump comes after the company’s shares already tripled this year, making Nvidia the world’s sixth-most valuable public company, behind only Big Tech stalwarts and Saudi Arabia’s state oil producer.

Nvidia has been one of the primary beneficiaries of the wave of interest in “generative” AI tools spurred by the launch of OpenAI’s chatbot ChatGPT last November. Nvidia’s computer chips are specially suited to help AI programs crunch the huge amounts of data necessary to give them the capability to have complex conversations, translate language and generate images based on simple prompts. Though there are signs that interest from consumers in chatbots is waning, large companies are busy buying as many of Nvidia’s chips as they can to give themselves the ability to train and run AI software of their own.

The interest in AI is “beginning to drive substantial demand in the real world, and Nvidia is perfectly poised to keep benefiting from that trend,” said Thomas Monteiro, senior analyst at financial news and analysis company Investing.com. “The main message here is that a huge number of big companies worldwide are actually willing to bet their futures on AI, and they will have to do so with Nvidia chips if they don’t want to fall behind the competition.”

Nvidia reported revenue of $13.5 billion, compared the $11.2 billion than analysts had expected, on average, according to data company FactSet. Next quarter, Nvidia said it expects its revenue to be even higher, at around $16 billion.

“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, Nvidia’s CEO, in a press release announcing the company’s second quarter earnings.

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