Nvidia benefited from the surge in demand for AI chips, and its revenue and profits increased significantly in the fourth quarter of last year. Quarterly revenue increased by 22% month-on-month and 265% year-on-year, which was higher than market expectations. Single-quarter revenue was even higher than that of the whole of 2021. Among them, the data center division, Nvidia's largest source of revenue, generated quarterly revenue of US$18.4 billion, a year-on-year increase of 409%, which was also higher than market expectations.

Nvidia's revenue and profits have hit record highs for three consecutive quarters. Originally, the market was worried that performance growth would not be as good as expected, and it would be difficult to support its high stock price and high valuation. However, the results announced by Nvidia did not disappoint the market. Many operating data set new records. Among them, the gross profit margin continued to be at a high level of over 75%, and its profitability was outstanding among its peers. As long as the AI craze continues, it will be difficult for any company to challenge its high-end AI chip market position in the short term, so short-term orders will continue to grow.

Earlier, OpenAI CEO Sam Altman disclosed Sora’s technical results for the first time.  Sora can automatically generate a one-minute short film based on the user's short text and content, and the video can present complex scenes, designated characters, actions, etc. As soon as this technology came out, the market was surprised by the development results of the latest AI technology. In fact, the rapid development of science and technology has promoted the development of AI as a major trend. Global semiconductor sales showed a strong rebound in the second half of the year after a downturn in early 2023. Benefiting from factors such as the growth in shipments of AI mobile phones and PC equipment, demand for AI chips continues, and this trend is expected to continue this year.

According to market forecasts, AI chip sales this year are expected to exceed US$50 billion and reach US$110 billion to US$400 billion by 2027. Nvidia will continue to benefit from the high industry prosperity.