Nvidia “shocked”, AI stocks took off across the board, “exploding” by US$300 billion

Author: Bu Shuqing

Nvidia’s Q1 performance greatly exceeded expectations, and the revenue of the data center business where the AI ​​​​chip is located hit a record high, setting off a carnival in the AI ​​​​sector of the US stock market overnight.

After the U.S. stock market closed on Wednesday, Nvidia once soared more than 28%, and its stock price rose to an all-time high above $390. Its market value increased by about $200 billion to $960 billion, and it is moving towards the seventh company in the U.S. stock market with a market value of more than $1 trillion. .

Driven by Nvidia, the stocks of other AI-related companies soared one after another. AMD once rose by 10%, TSMC once rose by 8%, and Microsoft and Google’s parent company Alphabet each rose by about 2%. The market value of these companies has increased by about 100 billion US dollars.

In other words, in less than two hours, the overall market value of the AI ​​sector soared by US$300 billion.

Nvidia’s Q1 performance exceeded expectations

In the context of the overall downturn in the semiconductor industry, Nvidia’s Q1 performance was particularly surprising.

The financial report shows that Nvidia’s Q1 revenue fell by 13% year-on-year, which was almost half of the market’s expectations and the fourth quarter’s decline. As the demand for generative AI and large language models continues to grow, the revenue of the data center business where its AI chips are located has hit a record high, far exceeding analysts’ expectations.

Even more surprising is the guidance for the second quarter. Nvidia expects Q2 revenue to increase by nearly 33% year-on-year to around US$11 billion, which is 53.2% higher than analysts’ expectations. It would also be the company’s highest-ever quarterly revenue.

As a one-stop solution provider, Nvidia provides GPUs that can help AI products train a large amount of text, images, and videos. It holds the “fate” of supplying computing power in the AI ​​large-scale model competition, thus becoming the concept of AI this year. A big winner in the boom. As of Wednesday’s close, the share price has more than doubled since the beginning of the year.

Nvidia’s strong results suggest that the explosion in artificial intelligence may drive a sharp increase in chip sales.

Nvidia “delivered explosive guidance that strongly underscored the bull thesis that the company is at the heart of a groundbreaking transformational point in (AI) technology,” said Adam Crisafulli, founder of information platform Vital Knowledge.

Nvidia CEO Huang Renxun said on the earnings call that a new generation of advanced Nvidia chips for AI computing in data centers is in production, “We are increasing supply significantly to meet the sharply rising demand.”

Nvidia is well-positioned to benefit from the AI ​​opportunity, Huang said, as the company began producing a new batch of advanced equipment for data centers after generative AI technology took off last year.

“I call it the iPhone moment,” he said, “when all the technology came together and made everyone realize what an amazing product it could be and how powerful it could be.”

Nvidia data center operators are restructuring their computing infrastructure to better address the opportunities presented by AI, Huang said.

“The trillion-dollar global data center infrastructure will shift from general-purpose computing to accelerated computing as companies race to apply generative AI to every product, service and business process,” he said.

Huang Renxun: There is only one Chinese market, and the “chip war” against China will do great damage to US companies

However, Nvidia still faces severe challenges amid the intensification of global semiconductor trade frictions.

According to the latest report from the Global Times, Huang Renxun recently issued a warning that the “battle” for chips provoked by the United States may cause “significant losses” to the US technology industry.

According to a report by the British “Financial Times” on the 24th, Huang Renxun complained in an interview with the newspaper that the export controls implemented by the Biden administration to curb the development of China’s semiconductor manufacturing industry “tie the hands and feet” of (Nvidia) Its largest market sells advanced chips.

Huang Renxun warned US officials: “If we are deprived of the Chinese market, we have no emergency measures. (In the world) there is no other China, only one China.” Huang Renxun said that the Chinese market is irreplaceable; if it is impossible to trade with the latter, It will cause “tremendous damage” to American businesses.

Source of information: compiled from 8BTC by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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