On May 24, Nvidia, the global leader in AI computing power, announced its financial results for the first quarter of fiscal year 2024, which ended on April 30. The company reported revenue of $7.192 billion, down 13% year-over-year but up 19% sequentially, and net income of $2.043 billion, up 26% year-over-year and up 44% sequentially. Among them, sales of chips for data centers reached a record $4.28 billion, and revenue from gaming chips reached $2.24 billion, both higher than market expectations.

In addition NVIDIA expects second-quarter revenue to reach $11 billion, an outlook that far exceeded analysts' expectations of $7.15 billion.

NVIDIA said it will increase production of its AI chips to meet the surge in demand.

The surge in Nvidia's earnings also sent the stock's market value soaring. NVIDIA's stock rose 28 percent after hours to $391.50, a record high. That added about $200 billion to its stock market cap, to more than $960 billion.

During the earnings call, Nvidia said numerous cloud companies are racing to deploy AI chips. Personal computer (PC) graphics processing unit (GPU) end demand "solid" in the first quarter.

The company locked in significant growth in data center chips and plans to significantly increase supply in the second half of the year, according to the disclosure. The company's entire data center product line, including H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU, are all being significantly increased in supply to meet the surge in demand.

Jen-Hsun Huang, founder and CEO of NVIDIA, also said that the computer industry is experiencing two simultaneous shifts - accelerated computing and generative artificial intelligence.