Better than expected for Nvidia

The profit per share was 81 cents against the expected 75 cents.

– It is further proof that the world’s most valued companies continue to cut gold with a razor knife, says SVT’s economic commentator Alexander Norén.

Nvidia, which manufactures processors for artificial intelligence and graphics cards, is valued at 3,600 billion dollars or approximately 40,000 billion kroner. This roughly corresponds to the Stockholm Stock Exchange’s total value times three.

Largest company in the world

– Their unique position as an almost exclusive court supplier to the AI ​​giants allows them to deliver yet another result with super strong growth. But now the expectations are set so high that it is not enough to exceed them by a little. You have to outperform by leaps and bounds so that the stock market is not disappointed, says Norén.

The growing appetite for Nvidia’s products around the world has led to an 850 percent price rise since the AI ​​boom took off two years ago. Since the turn of the year alone, the share has risen by more than 200 percent.

Production determines – not demand

– If the tech industry says this that AI continues to be hot, there is still no saturation of demand for the hardware needed to be at the forefront of the AI ​​race, says Norén.

What sets limits for Nvidia’s future earnings is therefore not demand, but rather what the company can produce.

– The demand for the new Blackwell chip is greater than what Nvidia can deliver for several quarters next year, says Maria Landeborn, analyst at Danske Bank to TT.

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