Nvidia shares leap as AI trend drives demand for chips

Shares in US chip company Nvidia soared more than 25 percent Wednesday after an earnings report showed the artificial intelligence trend is fueling demand for its sophisticated chips.

Net income for the fiscal quarter that closed at the end of April was $2.04 billion, up 26 percent from $1.68 billion in the same period a year earlier, Nvidia reported.

More than half of Nvidia’s revenue, some $4.28 billion, came from its data center business setting a new record high, according to the chip maker.

“The computer industry is going through two simultaneous transitions – accelerated computing and generative AI,” Nvidia founder and chief Jensen Huang said in an earnings release.