Audio By Carbonatix
Artificial intelligence (AI) chip giant Nvidia says its revenues for the three months to the end of July more than doubled compared to a year earlier, hitting a record $30bn (£24.7bn).
However, the firm's shares fell by more than 6% in New York after the announcement.
Nvidia has been one of the biggest beneficiaries of the AI boom, with its stock market value soaring to more than $3tn.
The company's shares have risen by more than 160% this year alone.
"It’s less about just beating estimates now, markets expect them to be shattered and it’s the scale of the beat today that looks to have disappointed a touch," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
The sky-high expectations are driven by its valuation, which has surged ninefold in value in under two years thanks to its dominance of the AI chip market.
Profits for the period soared, with operating income rising 174% from the same time last year to $18.6bn.
It was the seventh quarter in a row that Nvidia had beaten analysts' expectations on both sales and profits.
"Generative AI will revolutionise every industry," said Nvidia chief executive Jensen Huang.
The results have become a quarterly event which sends Wall Street into a frenzy of buying and selling shares.
A "watch party" had been planned in Manhattan, according to the Wall Street Journal, while Mr Huang, famed for his signature leather jacket, has been dubbed the "Taylor Swift of tech".
Alvin Nguyen, senior analyst at Forrester, told the BBC both Nvidia and Mr Huang have become the "face of AI".
This has helped the company so far, but it could also hurt its valuation if AI fails to deliver after firms have invested billions of dollars in the technology, Mr Nguyen said.
"A thousand use cases for AI is not enough. You need a million."
Mr Nguyen also said Nvidia's first-mover advantage means it has market-leading products, which its customers have spent decades using and has a "software ecosystem".
He said that rivals, such as Intel, could "chip away" at Nvidia's market share if they developed a better product, though he said this would take time.
Latest Stories
-
94 excavators seized, 237 arrested, majority foreigners—NAIMOS reveals
52 seconds -
NAIMOS raises alarm over rising involvement of minors in galamsey
7 minutes -
Act swiftly on climate and conflict risks – Local Government Minister to West African leaders
12 minutes -
Big Push exposé only the beginning — Sulemana Braimah
12 minutes -
Mining will continue but the risk of galamsey must be stopped—NAIMOS
15 minutes -
Ghana Month: Losing our dishes means losing our identity — Expert warns
22 minutes -
Illegal mining requires coordinated national response, KAIPTC Deputy Commandant urges
22 minutes -
Big Push: 81 of 107 contracts sole-sourced raises serious concerns – Sulemana Braimah
26 minutes -
Assemblies of God rallies behind Mahama after LGBTQ-linked degree withdrawal
29 minutes -
GES shoots down claims of new graduate teacher recruitment
31 minutes -
GEXIM@10: Experts explore policies to boost Ghana’s trade competitiveness
33 minutes -
Endangered Ghanaian dishes need better presentation to survive — UCC Lecturer
35 minutes -
NDPC deepens stakeholder engagement on national development plan in Bono East
37 minutes -
Suspect arrested over killing of elderly woman in Kadjebi
43 minutes -
Ghana Month: Ghana at risk of losing its heritage when it comes to food – Academic warns
48 minutes
