Nvidia's earnings and sales exceeded expectations, causing a 28% surge in their stock shares.
The company specializes in creating chips that power generative AI, a type of artificial intelligence that can produce new content in response to user prompts.
Generative AI is the technology behind popular AI advancements like ChatGPT, Google's Bard, and Dall-E.
Nvidia's CEO, Jensen Huang, highlighted the two major transitions in the computer industry: accelerated computing and generative AI.
Huang predicts a massive shift in global data center infrastructure towards accelerated computing as companies adopt generative AI in various aspects of their operations.
Nvidia is working to meet the surging demand for its data center products by increasing supply.
Last quarter, Nvidia's profit increased by 26% to $2 billion, and sales rose by 19% to $7.2 billion, surpassing analyst forecasts.
Nvidia's outlook for the current quarter is approximately 50% higher than analysts' predictions.