Chip giant Nvidia brought some relief to the tech sector after beating market expectations with quarterly results.
The company is increasingly optimistic about artificial intelligence, helped by ChatGPT being the ultimate water cooler discussion point this year.
It’s been ages wince we’ve had a real buzzword in the tech space and the chatbot has certainly taken the world by storm in a very short period of time. Nvidia stands to benefit as its chips are used to develop machine learning software.
AJ Bell’s Russ Mould said: “The company calls its DGX system an ‘AI supercomputer’ and ‘the blueprint of AI factories’ being built around the world. The newly announced launch of a cloud-based version of the system makes it even easier for companies to get on board this megatrend.
“When you have ‘the next big thing’ in tech, it’s natural for investors to scramble to find ways to play the theme. Nvidia’s involvement in the AI space now puts it directly under the spotlight which means there could be strong demand for the shares, explaining why there has been a positive market reaction to its latest results alongside the earnings beat.”
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