Photo Credit: Masaru Kamikura/Flickr.com
 

According to Nvidia’s (Nasdaq: NVDA) research, the artificial intelligence (AI) chips and software industry is a $600 billion market opportunity. The rapidly growing demand for AI technology is accelerating Nvidia’s growth. The company recently announced strong quarterly results. Nvidia itself is also playing a significant role in the development of the technology.
 

Nvidia’s Financials

Nvidia’s second-quarter revenues grew a massive 101% to $13.5 billion, ahead of market estimates of $11.2 billion. It ended the quarter with earnings of $2.70, also ahead of market estimates of $2.09.        

By segment, data center revenues grew 171% to $10.32 billion. Gaming revenues grew 22% over the year to $2.49 billion.

For the third quarter, the company forecast revenues of $16 billion, while the consensus estimate is at $16.06 billion.
 

Nvidia’s Growing AI Offerings

During the quarter, Nvidia continued to release significant new product upgrades including superchips like GH200 Grace Hopper Superchip targeted for complex AI and HPC workloads, L40S GPU — a universal data center processor to accelerate compute-intensive applications; NVIDIA MGX, a server reference design that lets system makers quickly and cost-effectively build more than 100 server variations and many more. Like others, Nvidia is also accelerating its AI growth plan.

It recently announced partnerships with a host of companies on AI initiatives. It entered into a partnership with ServiceNow and Accenture to develop AI Lighthouse, a pioneering program to accelerate the development and adoption of enterprise-generative AI capabilities.

It entered into an agreement with VMware to extend the strategic partnership to ready enterprises running VMware’s cloud infrastructure for generative AI. It tied up with Snowflake to provide businesses with an accelerated path to create customized generative AI applications using their own proprietary data.

It entered into an agreement with WPP to develop a generative AI-enabled content engine that will enable creative teams to produce high-quality commercial content faster while staying aligned with a client’s brand.

It entered into other similar agreements with SoftBank and Hugging Face aimed at accelerating the development of AI capabilities. It also released NVIDIA AI Workbench, an easy-to-use toolkit that will allow developers to quickly create, test, and customize pre-trained generative AI models.

It is also expanding its reach through strategic investments and recently announced that it was a part of the $90 million funding round for London-based Synthesia, a digital platform providing users with the ability to create AI-generated videos. Founded in 2017 by researchers and entrepreneurs Victor Riparbelli, Matthias Niessner, Steffen Tjerrild, and Lourdes Agapito, Synthesia has created software that allows people to use their digital avatars to deliver corporate presentations including training videos. 

Synthesia ultimately aims at eliminating the need for the simplification of video technology by eliminating the need for cameras, microphones, actors, and the long-drawn video production process. It has created animated avatars that look and sound human but are all created using AI. The new round of funding raised Synthesia’s valuation to $1 billion. The investment in the firm will help Synthesia train large AI models and accelerate its research efforts.

Nvidia is currently trading at $439.66 and has a market capitalization of $1.09 trillion. It reached a 52-week high of $503.66 in August and a 52-week low of $108.13 in October of last year.

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