The demand over the past year for artificial intelligence led chipmaker Nvidia’s profits to surge, with an earnings report released Wednesday showing that the company’s profits grew to more than $12 billion over the three-month period that ended January 28—a 769% year-over-year gain and a 580% increase in the company’s full-year profits compared to the year prior.
Nvidia produces processors required to power AI systems and accounts for about 70% of all AI semiconductor sales. They’re vital for generative AI, the fast-growing new technology that crafts text, images and more.
After the earnings report was released, shares of the company soared 7% in after-hours trading. A Goldman Sachs analyst said on Tuesday that Nvidia is “the most important stock on planet Earth.”
However, the U.S. introduced restrictions on exporting advanced AI chips to China, which raises questions about how long the period of significant growth can last. As a result of the restrictions, data center sales to China “declined significantly,” the company said, in the January quarter.
