Tech giants marching forth to the metaverse see its immense potential and have redirected product strategy and corporate directions to get into this next phase of the connected world.
For Nvidia CEO Jensen Huang, it's more than just tech savviness, virtual reality universes, and state-of-the-art products, but also offering companies enormous savings that could reach billions of dollars.
Nvidia CEO Huang Sees Metaverse to Lessen Operational Wastage
In an interview with CNBC's Jim Cramer on "Mad Money," Huang said businesses can rely on the metaverse, or what he calls the "omniverse" to lessen profligacy and boost operational efficiency.
Huang said companies always waste resources in their operations, but could opt to "simulate" to increase efficiency. He stressed that factories, plants, and the world's power grids can be simulated in the metaverse or omniverse.
Huang noted that such simulations of core operational facilities in the metaverse "could decrease the amount of waste," adding that its economics "are so good for companies."
He added that businesses would be "willing to invest a small amount of money to buy into this artificial intelligence capability" and said this would lead to saving "hopefully hundreds and hundreds and hundreds of billions of dollars."
Nvidia, a top manufacturer of graphics and artificial intelligence processors, has demand for its products steadily increasing. With the growing tech interest and investment on the metaverse, the trend is seen as an immense boon for the chipmaker. Nvidia's processors and cards are expected to play important roles in the development of devices that will push the metaverse.
While the metaverse has long been discussed in science fiction circles, big tech firms and investors have taken notice with Facebook rebranding its corporate parent firm to Meta. The company is set to utilize its vast tech resources to create interactive, immersive virtual worlds that use VR and augmented reality gadgets and services.
Nvidia Reports Better-Than-Expected 3rd Quarter Earnings
Nvidia has reported better-than-expected third quarter earnings and revenue, a separate CNBC report noted. The company announced its adjusted earnings per share at $1.17 and revenue of $7.1 billion. Analysts previously expected Nvidia to hit $1.11 earnings per share and revenue of $6.82 billion.
Earnings per share climbed 60 percent year-over-year and revenue increased 50 percent from the same period last year. Nvidia also declared it was expecting $7.4 billion in revenue in the present quarter, beating analyst expectations of $6.86 billion.
After the company released its earnings report, Nvidia shares rose more than 11 percent on Thursday morning, before closing with an eight percent rise. On Friday, Nvidia stock further closed four percent higher on Friday at $329.85 per share.
Its stock has soared 29 percent this month, and 66.6 percent in the past three months, due primarily to investor bullishness on the metaverse. Nvidia shares are up 144 percent year-to-date.
Its market capitalization stands at a lofty $824.6 billion, making the chipmaker the S&P 500's seventh most valuable company.