Largely producing the graphics processing unit (GPU), Nvidia announced its revenue to be $22.1 billion with a 265% annual increase in the backdrop of surging global demand for artificial intelligence (AI) equipment.

According to the recent financial results, The company had a revenue of $22.1 billion in Q4, which increased by 22% compared to the previous quarter and 265% compared to the previous year. The company’s founder and CEO Jensen Huang attributed the increase in sales to the boost in accelerated computing and creative AI demand. The chipset manufacturer currently has a market value of $1.67 trillion.

The result emerged along with Nvidia becoming the most traded stock on Wall Street by beating Elon Musk’s Tesla. In the last 30 trading sessions, about $30 billion worth of Nvidia stock was traded, during this same period it was reported by Reuters that the figure for Tesla was approximately $22 billion.

On January 27, Musk confirmed Tesla’s plan to spend over $500 million to procure AI hardware from Nvidia just for 2024. He said:

“The minimum amount of investment needed to be competitive in artificial intelligence is currently at least a few billion dollars.”

Tesla also has plans to purchase artificial intelligence-related hardware from AMD, the biggest rival of Nvidia as a GPU manufacturer.

The RTX series, first introduced in September 2018, is seen as a go-to platform for generative AI enthusiasts, gamers, and creators. In the third quarter of 2023, Nvidia obtained revenues of $18.1 billion supported by a robust market value of $1.2 trillion.

In December 2023, Yann LeCun, chief AI scientist at Facebook’s AI Research in Meta, admitted to Nvidia’s domination in the current AI hardware industry. He also indicated that the chip manufacturer was fueling the AI war.

“Yes, I know Jensen. There’s an AI war going on and he’s supplying the weapons.”

Nevertheless, LeCun criticized the overuse of text-based models for training generative AI systems. He said, “Text, as an information source, is very weak,” and added: “Train a system with 20,000 years’ worth of reading materials, they still wouldn’t comprehend that A equals B.”

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