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- AI chipmaker Nvidia posted record second-quarter revenues of $13.51 billion.
- The bumper earnings were 88% higher than the previous quarter and up 101% on-year.
- One jubilant analyst made a bold call: He thinks Nvidia will be the “most important company to civilization” in the next decade.
Wall Street darling Nvidia had another blowout quarter thanks to robust demand for its artificial intelligence, or AI, chips, sending its share price surging.
The chipmaker posted record second-quarter revenue of $13.51 billion — 88% higher than the previous quarter and up 101% from a year ago.
Angelo Zino, an equity analyst at CFRA, told Yahoo Finance Live Nvidia will be the “most important company to civilization” over the next five to 10 years because every enterprise company will be reliant on the chipmaker directly or indirectly.
Even Daniel Ives, an analyst at Wedbush Securities, gushed in a tweet: “It’s all about AI demand and use cases. The rest of tech will see this unprecedented spending wave not seen since 1995 over the coming years but Nvidia is on the front lines and the best barometer of true spending. This is NOT hype, it’s jaw dropping spending happening NOW.”
—Dan Ives (@DivesTech) August 23, 2023
The bumper results excited investors so much that they sent Nvidia’s stock up 3.2% to close at $471.16 apiece on Thursday. The shares extended gains by 6.6% in after-hours trade and are up 222% this year.
And there may be further opportunities for Nvidia in the AI space, according to one analyst.
“We are still in the very early innings of a multidecade computational transformation,” wrote Tejas Dessai, a research analyst at Global X, in a Wednesday note seen by Insider. “AI needs specialized chips to run on, and trillions worth of processing chips will be up for replacement through this decade.”
Dessai added there are other opportunities for AI chips as they eventually make their way into other products including smartphones, laptops, cars, and medical devices.