Nvidia (NASDAQ: NVDA) stock has been on a tear since the launch of OpenAI's ChatGPT last year, and it's starting to make sense. Companies large and small are scrambling to buy high-powered chips to train large language models and recommendation systems.

The booming demand led Nvidia to exceed analysts' revenue estimates, and next quarter's guidance crushed expectations on Wall Street.

Nvidia reported first-quarter revenue of $7.2 billion, compared to estimates of $6.5 billion. But the shocker was management's second-quarter guidance, calling for $11 billion in revenue, 53% higher than the consensus estimate.

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Source Fool.com