Nvidia's investment in its AI research labs has been paying off, with the company reporting strong demand for its chips. The company has put nearly $50 billion into the labs that develop artificial intelligence technology, and has lined up commitments for over $500 billion worth of work from those same labs.
This surge in demand is expected to continue as more companies invest in AI research. According to Colette Kress, Nvidia's chief financial officer, demand from its own balance sheet will contribute roughly a quarter of the company's business next year. This indicates that many of Nvidia's customers are purchasing chips for their AI-based products and services.
The increased focus on AI is driving innovation at Nvidia as well. The company has been investing heavily in research and development to stay ahead of the curve, with some estimates suggesting it could surpass AMD in global AI market share by 2024. As a result, investors expect Nvidia's stock price to rise further in the coming years.