Prediction: Vera Rubin Is About to Become a $20 Billion Windfall for Nvidia by Next Quarter
Nvidia is guiding for $108 billion in total revenue for the third quarter.
Overview
Nearly three decades ago, Nvidia (NASDAQ: NVDA) started off as a chip designer for enhancing graphics for video games. As it turned out, these chips were also unusually good at the kind of math that trains artificial intelligence (AI).
Over the years, Nvidia built accompanying software and systems that allow researchers and cloud hyperscalers to actually use these chips for more-advanced applications. The combination of fast-processing chips plus the tools to run them made the company the default supplier when large language models (LLM) took off a few years ago.
Details
Its Hopper chips were the workhorses of the first AI wave. Management smartly reinvested the profits it made from Hopper into research and development. Subsequently, the company's Blackwell architecture hit the market and became another monster success.
Source
Originally published at www.fool.com.