Shares in the chip maker Nvidia soared more than 20 percent on Thursday, after the company delivered a knockout quarterly sales outlook powered by demand for the processors that run artificial intelligence systems.
“We’re seeing incredible orders to retool the world’s data centers,” Jensen Huang, Nvidia’s chief executive, told analysts Wednesday on a conference call.
Nvidia’s chips are used to power A.I. systems; demand for the chips jumped during the boom in cryptocurrency, whose systems also rely on their processing power. At the close of trading on Wednesday, Nvidia’s market capitalization hit $755 billion, the fifth-highest public valuation in the United States. On Thursday, the company was closing in on the trillion-dollar club.
The A.I. rally has also lifted other chip stocks, including those for AMD, ASML and Taiwan Semiconductor Manufacturing Company. Since the introduction last year of the ChatGPT chatbot, the buzz around A.I. has intensified, making companies…
This article was written by Bernhard Warner and originally published on www.nytimes.com