Nvidia marks new era of computing with 101% jump in revenue

Aug. 24 (UPI) -- Chipmaker Nvidia on Thursday heralded the dawn of a new era in tech by announcing second-quarter profits were more than double the same period last year.

"A new computing era has begun," founder and CEO Jensen Huang said in a statement. "Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI."

Trading on the New York Stock Exchange, shares in Nvidia were up some 5% to eclipse $500 in pre-market activity. The company on Thursday reported earnings over the three-month period in July were $13.51 billion, 88% higher than the first quarter and 101% more than during the same period last year.

Hammering the theme of the rise in the use of artificial intelligence, Huang said cloud-service providers showed "massive" interest in its AI infrastructure, while leading tech and software firms said they'd bring Nvidia's AI platforms "to every industry."

"The race is on to adopt generative AI," he said. Looking forward, Nvidia said it expects revenues to increase by another 18% to reach $16 billion by the third quarter.

Artificial intelligence is advancing at a record pace. Early results from clinical trials show AI programs can be used safely to help radiologists review mammogram images and detect breast cancers, though AI is also the reason why actors and writers are on strike. They're concerned that AI-imaging and writing could replace their talent.

Meanwhile, after President Joe Biden signed an executive order Aug. 9 limiting exports of computer tech to "countries of concern," the Treasury Department said China is exploiting U.S. investments to modernize its military technologies.

"Rapid advancement in semiconductors and microelectronics, quantum information technologies and artificial intelligence capabilities by these countries significantly enhances their ability to conduct activities that threaten the national security of the United States," Biden wrote in the executive order.

Speaking to investors on Thursday, Nvidia's Chief Financial Officer Colette Kress said export restrictions would not have an immediate impact on the company's performance, CNBC reported.

"However, over the long term, restrictions prohibiting the sale of our data center GPUs to China, if implemented, will result in a permanent loss of an opportunity for the U.S. industry to compete and lead in one of the world's largest markets," she said.