Semiconductor giant Nvidia does not intend to slow down its ambitions in the field

Semiconductor giant Nvidia has no plans to slow down its AI ambitions after record quarterly revenue, with the company generating a record $26 billion in the first quarter.

On May 22, Nvidia released its first quarter earnings report. Revenue jumped 18% from last year’s fourth quarter and 262% from last year, beating analysts’ estimates of $24.6 billion.

The profits saw NVDA’s stock price hit an all-time high after hours on May 22 of just over $1,000, pushing its market value past $2.5 trillion.

The result is greater than the market capitalization of Tesla and Amazon combined, twice the value of Bitcoin (BTC) and more than five times the value of Ether (ETH).

Five years ago, Nvidia’s market capitalization was just $100 billion, but today it is the third-largest public company in the world and just 17% away from overtaking Apple.

Source: Market observation

The company reported strong data center revenue growth of $22.6 billion, driven by accelerating demand for AI training.

The next industrial revolution is starting to move toward new types of data centers: “AI factories to produce a new product: artificial intelligence,” said Jensen Huang, founder and CEO of Nvidia.

“We are ready for the next wave of growth,” he said before announcing that Blackwell’s new platform, designed for generative supercomputing at the scale of billions of parameters for AI , was in full production.

The company will now begin producing AI chips on an annual basis, according to Huang, who confirmed the new production cycle during the company’s earnings call:

“I can announce that after Blackwell there is another segment. “We are on a one-year pace”

So far, Nvidia has produced a new chip architecture roughly every two years, with Ampere in 2020, Hopper in 2022, and Blackwell in 2024.

Nvidia Earnings Report. Source: Nvidia

The company also revealed an expanded collaboration with Amazon Web Services (AWS), Google Cloud, Microsoft and Oracle to advance innovations in generative AI.

New AI performance enhancements and integrations for Microsoft Windows have been revealed to deliver maximum performance on Nvidia GeForce graphics cards and PCs.

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The company also announced new AI gaming technologies – Nvidia ACE and Neural Graphics – and hinted at exploring AI for more immersive gaming experiences. However, gaming revenue in the first quarter was $2.6 billion, down 8% from the previous quarter.

Nvidia plans to continue pushing the boundaries of artificial intelligence in industries such as automotive (autonomous driving), robotics, healthcare, and semiconductor manufacturing.

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