The stunning stock growth Nvidia Corp (NASDAQ-NVDA) has seen over the past year has made the company one of the three most valuable companies in the world. One is that the applications of artificial intelligence enabled by its semiconductors will become a feature of the modern economy. But its continued success depends on whether Microsoft Corp, Google and other tech companies find enough commercial uses for Nvidia’s AI chips. Nvidia has also engaged antitrust authorities, who have focused on Nvidia’s market dominance and are examining whether customers are complaining about the company’s switching to other suppliers of AI chip suitors.
Nvidia Corp. (NASDAQ-NVDA) recently released its second quarter financial results. The company posted record quarterly revenue, which increased 122% year-over-year to $30.0 billion. The largest increase was in data center sales. Record quarterly data center sales were $26.3 billion, an increase of 154% year-over-year! The company’s gross profit increased 138% year-over-year to $22.574 billion. Excluding all expenses, the company’s net profit was 168% higher year-over-year at $16.599 billion. These facts have intrigued investors to buy shares of Nvidia Corp (NASDAQ-NVDA) specifically, which also recently revealed improved generative AI that will be delivered in new chips. In Denver, CEO Jensen Huang described the company’s role in developing AI, as well as chips and hardware in the world. For example, the company is currently making AI services and models available to help robot makers accelerate the development of humanoid robots to help researchers teach robots how to perform certain tasks using devices such as Apple’s Vision Pro virtual glasses. The company also recently revealed at a conference in Denver, a future collaboration between Nvidia and Facebook in the areas of graphics and virtual environments.
The charm of artificial intelligence is the long-term ability of software and systems to learn without human intervention. This gives AI-driven software and systems the ability to become more efficient at performing tasks and to evolve to learn new skills. With a market that spans most sectors and industries, PwC analysts believe that AI can add $15.7 trillion to the global economy by 2030. Nvidia Corp (NASDAQ-NVDA) also pays regular quarterly dividends to its shareholders. The dividend yield is currently 0.03% per annum and the actual dividend amount has been approved by the company’s general meeting of shareholders at $0.04 per share. The average target price for the short to medium term investment horizon has been set at $152.44 per share.
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