Analysts expected a 240% increase in Nvidia's revenue, but it smashed these targets by pumping up revenue by 265% from just a year ago.
👉 Background: Nvidia has been around since 1993 when it developed 3D graphic chips for games.
👉 What happened: More recently, Nvidia has been producing the specialised AI chips for AI tools. As a result, Wall Street investors have come to expect enormous growth from. In fact, analysts expected a 240% increase in its revenue, but Nvidia smashed these targets by pumping up revenue by 265% from just a year ago.
👉 What else: Microsoft, OpenAI, Amazon, Meta, and Google are all desperate to get their nerdy hands on these AI chips. And because of that, Nvidia's revenue and demand has become a bellwether for overall interest in the AI industry.
💡A bellwether stock is a company that is considered a leading indicator of an economic trend.
💡Right now, there is a race to release new AI products and features (Think: Alibaba, Microsoft, OpenAI, Meta, and Google). But, it's clear from these earnings that the AI-gold-rush ain't slowing down any time soon.
💡There are bellwether stocks in many industries. For example, in the luxury fashion industry, LVMH is considered a bellwether stock too. When LVMH reported a 10% jump in its 4th quarter earnings, the shares of rivals Kering and Richemont also jumped.
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