Nvidia, the chip giant, has posted a record annual revenue of $215.9 billion (£159.1 billion), despite investor concerns over the vast amounts of money being spent on artificial intelligence (AI) technologies. Sales increased by 73% in the last three months of the company’s fiscal year compared to the previous year, above analyst expectations.”Computing demand is increasing exponentially,” CEO Jensen Huang stated. “Our customers are racing to invest in AI compute – the factories powering the AI industrial revolution and their future growth.”
While Nvidia provides chips to companies in the AI field, it has also announced intentions in recent weeks to drive demand with new technologies of its own. Nvidia is the world’s most valuable publicly traded business, with a market capitalization of over $4.8 trillion. It has become a key actor in the development of AI infrastructure, delivering advanced chips to top AI model developers such as OpenAI and Meta.
According to Gene Munster, management partner at Deepwater Asset Management, the buildout is expected to last for a long period.”AI is accelerating faster than people who aren’t using these tools can understand,” Munster said on the social media platform X on Wednesday. Nvidia has been scrutinized by investors concerned about its ever-expanding network of partnerships with other companies. Critics have suggested the possibility of “circular financing” transactions, in which Nvidia’s investments in other startups may obscure perceptions of how strong AI demand truly is.
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