Nvidia reports quarterly revenue and says new AI chips are on the way

Chipmaker Nvidia released a quarterly report after the close of trading on Wednesday showing sales of $30 billion, 15 percent more than in the previous quarter.

Wall Street is watching Nvidia to assess the sustainability of new technology and AI initiatives.

Nvidia is already up 122% year-on-year. At one point this year, the company was valued at over $3 trillion. The question now is whether the upward trend can continue.

The earnings reported Wednesday represent more than double the revenue Nvidia generated last year and roughly five times the revenue it generated in the months before its AI text program ChatGPT sparked a new surge in AI development.

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Nvidia said Wednesday it plans to ship billions of dollars worth of next-generation AI-capable chips by the end of the year. Nvidia says the chips, whose release was pushed back to the fourth quarter of this year in early August, will be even better able to handle the heavy workloads of AI processing and quantum computing.

After-hours trading, the share price fell by almost 4%, but analysts remain confident that the company's momentum will continue.

“These are the most widely watched earnings — not just in the technology sector, but in the entire market — in many years,” Dan Ives, an analyst at Wedbush Securities, told the Associated Press. “Investors tend to overreact to any kind of short-term weakness. But I think this has actually added more fuel to the bull market.”