| The news: Bolstered by huge demand for its AI chips, Nvidia said it expects Q2 revenue of $11B, over 50% higher than Wall Street's forecasts, and a 64% increase over the same period a year ago. What happened: Nvidia's share price surged over 25% on Thursday after reporting better-than-expected first-quarter earnings and a Q2 outlook that stunned analysts and investors. After promising a greater supply of its AI chips moving forward, the company saw its market valuation grow to more than $940B on Thursday, up from $755B the day before. The big picture: The remarkable growth is fueled by the AI boom and rising demand for processing power in applications like ChatGPT. Nvidia's dominance in the GPU market for machine learning is attracting high demand from major cloud providers and tech companies. While competition is fierce, analysts predict that Nvidia will maintain its top position as the world's most valuable chipmaker.
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