The Dow Jones Industrial Average surged over 450 points on Thursday, surpassing 39,000 for the first time, largely due to a company’s earnings driven by artificial intelligence and cloud technology.
Nvidia’s fourth-quarter earnings report also propelled the S&P 500 to a new record and its best single-day gain in the past year.
Nvidia’s robust operating performance demonstrates its strong platform offerings for generative AI transformation, which is increasingly adopted across industries and use cases, according to Raj Joshi, senior vice president for Moody’s Investors Service.
Nvidia reported a five-fold increase in AI and cloud revenue, with net income exceeding forecasts by nearly $2 billion. The stock surged to a record high on Thursday after slipping for four consecutive sessions before Wednesday’s earnings.
The chipmaker’s revenue grew 265% in the fourth quarter, attributed to being the only chip maker with a full-stack solution running generative artificial intelligence (genAI) platforms.
According to Jensen Huang, founder and CEO of Nvidia, accelerated computing and generative AI have hit the tipping point, with surging demand worldwide across companies, industries, and nations.
Over time, investors can expect to see more than 50% of Nvidia’s data center business coming from clouds running AI services. Cloud providers such as Google and Amazon have their own GPUs to support AI-centric workloads.
TPUs, or Tensor Processing Units, are chips that perform AI acceleration.
GenAI is expected to drive on-device AI chipsets for PCs and other mobile devices to more than 1.8 billion units by 2030, according to ABI Research.
Generative AI workloads running on heterogenous chipsets distribute workloads at the hardware level between CPU, GPU, and NPU. Qualcomm, MediaTek, and Google were the first movers in this space, with Intel and AMD leading in the PC space.
For the time being, Nvidia will…
2024-02-29 17:00:03
Post from www.computerworld.com
