However, US-China tensions could potentially slow Nvidia's growth, as the company has historically relied on China for a quarter of its revenue. Sales in China have dropped significantly due to US export restrictions on advanced American chips to Chinese companies. Despite increasing competition, with OpenAI CEO Sam Altman reportedly trying to raise up to $7 trillion to build rival AI infrastructure, Nvidia remains the industry leader.
Key takeaways:
- Nvidia reported its Q4 fiscal earnings with quarterly sales reaching $22.1 billion, a 265% increase from the same period a year ago, and its net profit surged to $12.3 billion.
- Nvidia controls approximately 80% of the high-end AI chip market, according to Reuters.
- Goldman Sachs's trading desk dubbed Nvidia 'the most important stock on planet Earth' as it is a proxy for AI demand, which has been the main driver of the stock market for the past year.
- US-China tensions and export restrictions on advanced American chips to Chinese companies could potentially slow down Nvidia's growth, as the company has historically relied on China for a quarter of its revenue.