Nvidia reports 600% profit increase as AI good times arrive

Chipmaker Nvidia beat analyst expectations by reporting record earnings for its fiscal first quarter on Wednesday, with sales of more than $26 billion in the three months ending in April and net income of $14.9 billion. This means an increase in profits by over 600% and an increase in revenues by over 200% compared to the same period last year.

With Nvidia reporting its third straight quarter of growth exceeding 200%, it’s a sure sign that the AI ​​boom will only get bigger. The chipmaker has seen a surge in sales of its high-end chips, known as graphics processing units or GPUs, as big tech companies and new artificial intelligence startups compete to create more efficient models.

This quarter’s revenue is expected to be around $28 billion, which will also exceed expectations. The company also announced a ten-to-one forward stock split starting in June, which is expected to facilitate stock purchases and increase liquidity.