Despite concerns over competition from Chinese company DeepSeek, which claimed to have developed a cost-effective AI model using Nvidia chips, Nvidia remains a dominant force in the AI sector. The company's market value has soared to over $3 trillion, making it the second-largest company on Wall Street after Apple. Nvidia's success has contributed to the S&P 500's recent record highs, even amid economic concerns such as high inflation and trade policies under President Donald Trump.
Key takeaways:
- Nvidia Corp. reported a surge in fourth-quarter profit and sales due to high demand for its Blackwell chips, which power AI systems.
- The company posted revenue of US$39.3 billion for the quarter, up 12% from the previous quarter and 78% from the previous year.
- Nvidia's earnings report exceeded Wall Street expectations, with adjusted earnings of 89 cents per share compared to the expected 85 cents.
- Nvidia has become the second-largest company on Wall Street, valued at over US$3 trillion, and plays a significant role in the S&P 500's recent record highs.