Nvidia Sales Reach New Heights as Company Forecasts Bigger AI Boom

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By Asa Fitch

(The Wall Street Journal) — Nvidia’s sales more than tripled in its fourth quarter, as the semiconductor maker scrambled to meet the demand for its chips that are powering new artificial intelligence systems.

Chief Executive Jensen Huang described AI as hitting “the tipping point” and indicated de-mand for the computing power that underlies AI remained astronomical. “Demand is sur-ging worldwide across companies, industries and nations,” he said.

That demand showed up in the company’s results Wednesday. Sales more than tripled in the company’s fiscal fourth quarter from a year earlier and are projected to do so again in the current period. Earnings surged more than eightfold. The results exceeded analyst ex-pectations.

Nvidia’s results act as a bellwether for the strength of the AI boom, as big tech companies such as Microsoft, Google and Apple place large bets on the technology and need Nvidia’s hardware to drive them.