-
Nvidia recently reported its quarterly earnings, which were again strong.
-
The company believes that important transitions are coming for artificial intelligence, especially in connecting the physical and digital worlds.
-
10 stocks we like more than Nvidia ›
NVIDIA (NASDAQ: NVDA) has been at the forefront of advances in artificial intelligence (AI) with its cutting-edge chips used in the latest technologies. While its sales growth has slowed somewhat, the company’s overall finances remain strong. And as long as there is broad demand for its AI chips, the stock can continue to rise.
The good news is that CEO Jensen Huang doesn’t foresee a slowdown. The company is coming off another stellar quarter and Huang believes there is a “revolutionary” transition on the horizon, which could mean even more opportunities for his company in the future.
On Nvidia’s most recent earnings conference call, Huang said that “the transition to physical and agent AI will be revolutionary and will lead to new applications, companies, products and services.” You’ve probably already heard of agent AI, which can perform more complex tasks than chatbots and involve multiple steps. A common example is booking trips based on specific parameters and requirements. But agent AI has the potential to do even more, and it’s still in the early stages.
Physical AI, however, is what the company says is “the next stage of growth” for its business. Physical AI is where AI interacts with machines and connects the digital world to the physical world, such as with robotics and autonomous vehicles.
It’s a huge opportunity for AI that could really transform industries in much more significant ways than just chatbots. Nvidia CFO Colette Kress called it a multibillion-dollar opportunity.
On November 19, Nvidia released its latest quarterly numbers, which showed incredible growth. Revenue of $57 billion for the period ending October 26 was a new record, increasing 62% year over year.
Just a few years ago, Nvidia wasn’t even generating that much annually, let alone generating that much per quarter. The company’s rise has been phenomenal and hearing that there are many opportunities is certainly encouraging for long-term investors.
Meanwhile, the technology company expects further growth for the current quarter, with sales projected to increase by around $65 billion and gross profit margins of around 75%. It’s a truly fantastic performance for a business that seems unstoppable at the moment.