The company's sales forecast exceeded Wall Street's expectations, and it announced it would buy back $25 billion worth of its own shares, a move most companies make when executives believe they are undervalued, according to Reuters.
Nvidia believes the AI boom is far from over.
Nvidia says it plans to ramp up hardware production next year, dispelling doubts some analysts had raised about the longevity of the AI craze. The company has a near-monopoly on the computing systems used to deliver services like ChatGPT—OpenAI's AI chatbot.
Huang told investors in an online conference that his company has a very optimistic view of the AI boom continuing this year and into the next. They have already planned for next-generation infrastructure with leading data center builders and cloud computing companies.
In an interview with Reuters, Huang said two things are driving that demand. First, the shift from traditional data centers built around central processors to centers built on Nvidia's powerful chips. Second, the increasing use of AI-generated content across all sectors, from legal contracts to marketing materials.
He said: "These two fundamental trends are the cause behind everything we're seeing, and we're about a quarter of the way there. It's hard to say how much further we have, but this fundamental shift isn't about to end..."
Previously, Microsoft invested $10 billion in OpenAI. Meta Platforms, Amazon.com's AWS cloud computing unit, and other companies have also bet tens of billions of dollars in general on AI-related products and hardware.
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