Nvidia announces revenue of R$300 billion in 2023 – 02/21/2024 – Tech

Holding a strategic position in the race for the development of artificial intelligence, Nvidia announced, this Wednesday (21), revenue of US$ 22.1 billion (R$ 108.9 billion) in the last quarter of last year. The increase is 265% compared to the same period of the previous year.

Thus, the company accumulated revenue of US$60.9 billion (R$300.2 billion) throughout the year. The result is better than that of Microsoft, the company with the highest market value in the world, for 2023 (US$56 billion).

The result was above market expectations for the company in the last three months of 2023: revenue of US$20.55 billion (R$101.3 billion), according to the financial information platform Investing.

Since late 2022, when OpenAI opened public access to ChatGPT and sparked enthusiasm for AI, the advanced chipmaker’s share price has more than quadrupled.

The company’s market value has risen by more than 150% since the release on February 22 of last year of the company’s results for 2022, when the demand for artificial intelligence developers began to be reflected in the technology giant’s numbers. .

Nvidia’s earnings per share (EPS) of US$5.16 also exceeded investors’ expected value of US$4.64.

The company will also distribute dividends of US$0.04 (R$0.20) per share on March 27th.

According to Investing’s chief analyst, Thomas Monteiro, these numbers dispel the suspicion that Nvidia is going through a bubble. In transactions after the closing of the New York Stock Exchange this Wednesday, the value of the chip manufacturer’s shares rose by around US$50.

Nvidia produces so-called GPUs (graphics processing units), essential for training large artificial intelligence models, such as OpenAI’s GPT and Google’s Gemini. Of this cutting-edge AI chip market, 80% is under the company’s control.

This coveted piece sold for more than US$30,000 (around R$147,000) at retail, as it is essential for training generative AI platforms in a viable time and, at certain times last year, it was in short supply .

To meet this demand, the technology company invested US$2 billion (R$9.74 billion), out of a total of US$2.9 billion (R$14.2 billion), in the construction of a new plant focused on AI chips for TSMC, a Taiwanese chip factory that takes Nvidia projects off the ground.

Nvidia’s data center sector was responsible for 83% of the revenue announced in the balance sheet, as the company also directed its production capacity to reinforce its data processing centers.

The technology giant rents its computing capacity to smaller companies to develop their own projects.

“The performance of our data center platform is driven by drivers specialized in processing and training data from cloud services and large enterprises,” Nvidia chief executive Jensen Huang said in a statement. This means competitive advantage in the development of artificial intelligence solutions.

“The chip area shows a pattern that the company that has the cutting-edge technology always dominates around two-thirds of the market, and Nvidia is profiting from that,” said Monteiro, from Investing, in an interview with Sheet.

This dominance over a market with the possibility of exponential growth is what attracts money from large funds and also from domestic investors to the chip manufacturer.

Nvidia’s strategic position made the company surpass Tesla as the most traded stock on Wall Street at the beginning of the year.

Nvidia’s outsized representation in daily stock trading left investors more vulnerable to lower-than-expected results, which led to a devaluation of the company’s shares last week.

At their peak, Nvidia shares rose 47% in 2024, and analysts interviewed by Reuters stated that any negative result could reverse this increase. The company’s balance sheet for the semester, however, surprised financial institutions positively.

The frenzy with the company catapulted the company above Google and Amazon in market value.

This Wednesday, Google and Amazon had recovered their positions above Nvidia, after adjustments made by investors on the American stock exchange.

The enthusiasm for the company is such that shares of smaller artificial intelligence companies rose on the 14th, after Nvidia revealed that it had a stake in them, offering clues about its growth strategy.

Nvidia disclosed its holdings until December 31st in a document to the SEC, the body that regulates the capital markets in the USA, on Wednesday night (14).

Nvidia, however, deals with a regulatory risk. It is the main target today in the American effort to restrict Chinese access to advanced chips. China is the US’s main competitor in AI development.

The company, based in California, has been seeking to circumvent export limitations to China determined by the Department of Commerce since 2022.

The country accounts for a fifth of Nvidia’s revenue, according to Huang himself. “If we are deprived of the Chinese market, we have no contingency for that, there is no other China,” he said last year. “If they can’t buy it, they’ll make it themselves.”