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Nvidia’s earnings and income increased the last quarter as a hurry among technology companies to build an artificial intelligence infrastructure for chips for advanced chips that have made it one of that BOOM’s biggest winners.
Sales increased 78 percent year by year to $ 39.3 billion, above estimates in a Bloomberg study of 38.3bn $. Net revenue increased to $ 22.1 billion, with 80 percent a year ago. The group expects to report about $ 43 billion for the current quarter.
Nvidia had been one of the highest performance shares in Wall Street over the last two years, helping to strengthen the higher American market, as investors bet on unsaturated demand for chips.
Record for the actions was pierced last month after the Chinese start of Ai Deepseek claimed it could train models in less advanced chips than rivals such as the US -based Openai.
In his first group of results since the demand cast on the future request for chips, Nvidia Jetvidia Huang chief executive destroyed those concerns on Wednesday, saying he had “amazing” demand for the latest generation of the Blackwell group.
The data from the data center nearly doubled in the quarter that ends on January 26th after large technology companies rapidly built its offers. Blackwell gave $ 11 billion in revenue for the quarter.
Huang specially addressed Deepseek during a call with analysts, saying that new ‘reasoning’ models such as R1 Deepseek’s consume much greater amounts of chip power than their ancestors, and its sudden arrival on stage had “stirred global enthusiasm” for technology.
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“Deepseek’s threats or interruptions were not visible on the request for Blackwell’s chips or database revenues,” Dec Mullarkey, Managing Director at SLC Management. “The profits were not an explosion, but they didn’t even show any bright weaknesses.”
Blackwell participation hit some initial obstacles, with production issues and reports on some recurrence of chip overheating in the server. But Wednesday’s results suggested the transition from the previous chip architecture was continuing smoothly.
Nvidia Colette Kress main financial officer noted that profit limits had fallen due to the transition to “more complex and higher cost” systems “Blackwell.
Despite Huang seeking to provide investors for long -term demand for chips, Nvidia is no longer the electrifying strength that was for US stock markets for the most part in the last two years, when its often quarterly results fueled Wall Street’s enthusiasm for him.
Nvidia shares changed slightly in post -time trading in New York, as almost 4 percent increased on Wednesday before its results are released.
The shares have recovered some of their losses since a 17 percent diving record last month after Deepseek amazed the industry, but remains about 2 percent this year. They increased by more than 800 percent during the 2023 and 2024 course.
Prior to Wednesday’s results, analysts also flags uncertainties on how the new possible export controls and fees in the US could affect Nvidia.
The group is exposed to geopolitical tensions between Washington and Beijing while they are involved in a gun race on it.
A new export control regime “AI Diffusion” was also introduced in the last days of Joe Biden’s administration, which aims to make it more difficult for China to use other countries to bypass the American export limitations on the chips.
Nvidia took the rare step to publicly criticize the rules, saying they will weaken competition and undermine innovation. But Donald Trump’s administration has shown a little sign of returning the course in efforts to hit China’s entry into the main chips. The president has threatened new tariffs for semiconductors from Taiwan.
With the tariff, “at this point is a little unknown.. Until we find out what is the US government plan,” Kress said.
Additional reporting by george steering
