The figures announced by Nvidia beat all analysts’ best forecasts. While some were predicting a slowdown in the chameleon’s growth, the company has just published the figures for its fiscal year (ending in January). With sales of $61 billion, growth was again very strong, much to the delight of the stock market. But where analysts swoon is when it comes to net profit. At nearly 30 billion for the year as a whole, this new record boosted the company’s market capitalization even further. During a conference call for business analysts, CEO Jensen Huang couldn’t hide his delight:
Nvidia has enabled the emergence of a new computing era, that of generative AI, where software can learn, understand and generate all kinds of information: human language, biological structures or even 3D universes.
Nvidia: the stock market is simply spellbound
It’shard to find fault with such spectacular figures. However, some old-timers think they can detect in all this exuberance the same precursory signs seen in the famous Internet bubble… But the facts are there: Nvidia’s valuation today far exceeds that of a giant like LVMH, whose brands will undoubtedly still be around in 100 years’ time. In just one year, its share price has tripled.
And what about graphics cards for our PCs?
Well, here again, there are two approaches. The most addicted to the “AI” hype will say that this part of the business now only represents 10.4 billion dollars (or 17% of activity). Others, however, will note that even in the midst of a still difficult year, this sector grew by 15% over the year at Nvidia. Proof that the policy of high prices works. Finally, Nvidia has undoubtedly eaten its fill. On the sales explosion front, the feast may be about to subside. Not that the AI sky is darkening, but the greens will soon no longer be the only ones at the table in this market.
