AI skeptics silenced: investors hint at Nvidia's impressive profits
Kyiv • UNN
Nvidia plans to report impressive financial results from AI chip sales in the second quarter of 2024. The company expects significant revenue growth from its next-generation Blackwell GPUs in the coming quarters.
According to Goldman Sachs, Nvidia plans to give a presentation on profits and losses in the field of artificial intelligence chips, and this information will impress skeptics. Writes UNN citing Businessinsider.
Details
Nvidia is set to announce its results for the second quarter of 2024 at the end of August, which will emphasize profits from sales of artificial intelligence-enabled GPU chips.
“End-user companies and their investors will soon start looking for revenues to justify the $500 billion already spent. There's no denying computing power. But after the latest hype around the latest chips, investors may question the near-term economic performance,” Bank of America said in a note earlier this week.
Overall, Nvidia is expected to deliver a positive earnings surprise that will lead to positive EPS revisions.
Reference
In its latest earnings announcement, Nvidia emphasized that for every dollar spent on its HGX H200 servers, an API provider serving Meta Llama 3 tokens can generate $7 in revenue over four years.
Other key findings relate to expected revenue growth from Nvidia's next-generation Blackwell GPUs.
Nvidia's revenue from Blackwell chips is expected to be limited in the third quarter of its fiscal year, but is expected to be followed by “stronger growth in the fourth quarter of the fiscal year (January) and the first quarter of the fiscal year (April).
Recall
Google, OpenAI, Microsoft, Amazon, Nvidia, Intel, and other prominent companies in the field of artificial intelligence are coming together to form the Coalition for Secure Artificial Intelligence (CoSAI).
