Computer chip manufacturer Nvidia beat Wall Street expectations in a closely watched earnings report on Wednesday, posting more than $22 billion in quarterly revenue thanks to high demand for its artificial intelligence chips.
The report, given after the closing bell on Wall Street on Wednesday, drove Nvidia shares about 6% higher in extended trading.
Nvidia's total revenue is up 265% year over year thanks largely to huge investment across the tech space in artificial intelligence computer models, which require powerful computer hardware to develop and run. AI applications are springing up in internet, health care, investment, self-driving vehicles and artistic fields.
"Strong demand was driven by enterprise software and consumer internet applications, and multiple industry verticals including automotive, financial services, and healthcare," Nvidia said.
Nvidia, already leading tech stocks, expects more big AI earnings
Nvidia is a key player in the fast-growing generative AI space. In the last two years, revenue from these applications has exploded.
Its revenue in recent months has made Nvidia's data-center business its highest-earning product segment. Previously, the segment earning the company the most revenue was standalone graphics cards used in high-end consumer and professional computers. This quarter, data-center sales brought in more than $18 billion in revenue for the company and were more than 400% higher than this time last year.
Nvidia told investors that revenue for the next quarter is expected to beat projections as well.
