Nvidia, the prolific chip maker winning the AI race, has reported a record annual reveue of £159.1bn ($215.9bn), beating out rising apprehension from investors concerning the mass funding AI has raised.

The firm’s record revenue surpassed forecasts from analysts, boosted by a 73% surge in sales over the last three months of the financial year compared to the previous 12 months.

Nvidia has seen its market value and revenue skyrocket since the fandamoniam around AI sparked by the launch of ChatGPT started about three years ago; the chip maker has successfully dominated the market with its AI chip designs, though competition remains high.

The AI race has seen Nvidia climb to be the world’s most valuable company in public trade; its stock market value hovers around £4.8 trillion.

“Computing demand is growing exponentially,” Nvidia CEO Jensen Huang said. “Our customers are racing to invest in AI compute – the factories powering the AI industrial revolution and their future growth.”

But since the rise of AI, investment strategies have shifted dramatically. While OpenAI, Google, Meta, and Anthropic had seen their stocks climb thanks to investors hunger for AI software, funding is shifting its focus towards infrastructure.

Data centres, energy grid updates, and construction are now seeing their own investment frenzy as the physical reality of AI takes hold.

Recommended reading

• AI Adoption Hits 90% Among Developers, Google Report Finds
• Nvidia Shatters Forecasts as AI Bubble Debate… Bubbles
• NVIDIA Invests £11BN into UK AI Infrastructure

Nvidia, with its chip manufacturing success, was perhaps an early tell on investor mindset – AI is nothing without the compute power and energy required to sustain it.

Still, Nvidia’s marked success has yet to defy all scrutiny. The chip maker continues to make deals with various AI firms in what analysts are worried culminates in a “circular financing” swirl of interconnected investments. So far for Nvidia, however, the AI bubble has yet to burst.

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