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Nvidia says growth will continue as AI hits 'tipping point'

Economic Times · 10m

Nvidia's quarterly financial results demonstrate its success in the AI industry, with demand for its products fueling continued sales growth. The company's revenue more than tripled to $22.1 billion in the fourth quarter of 2021, surpassing Wall Street estimates. Nvidia predicts revenue of around $24 billion for the current quarter, attributing the growth to the ongoing upgrade of data centers with AI chips. The company's stock market gains have led to a market valuation of $1.7 trillion, making it one of the world's most valuable public companies. However, concerns remain about the company's high valuation and potential competition from other chipmakers and cloud computing giants. Additionally, the Biden administration's restrictions on chip sales in China have impacted Nvidia's sales to the country, although it now comprises only a small percentage of its data center chip revenues. Overall, Nvidia expects significant growth opportunities in the AI industry for years to come.