US chip designer Nvidia – which attempted to buy British rival Arm and is now a major investor in the Cambridge-based company – has seen its shares more than triple in value so far this year.
This has made it the best-performing stock in the S&P 500.
So there will be much interest when it publishes its third quarter results on Tuesday.
This includes many British investors who own its shares outright or through popular funds including Bailie Gifford American and Scottish Mortgage Investment Trust.
One of the so-called Magnificent Seven alongside fellow American corporate giants Alphabet, Amazon, Apple, Meta, Microsoft and Tesla, Nvidia has helped drive a substantial portion of stock market gains in the US this year.
As such, expectations are high, with analysts expecting third quarter revenues to come in at around £13billion and profits to hit as high as £7billion.
For much of the past 30 years, Nvidia’s success has come from computer games, with its chips featuring in the likes of Call Of Duty and Counter-Strike.
But its chips are now a favourite for Artificial Intelligence, or AI, and when OpenAI released ChatGPT last year it contained more than 20,000 graphics processors made by Nvidia.
And boss Jensen Huang has been bullish about the company’s potential.
Speaking this week, he said AI would ‘be bigger than the internet, by far’.
But there are concerns that rivals may flood the market to get a slice of this lucrative pie.
This post first appeared on Dailymail.co.uk
