Nvidia earnings top expectations with sales surging 101% to $13.51B after AI chipmaker’s stock tripled this year and fueled Wall Street’s technology rally
Nvidia’s earnings beat expectations with revenue up 101% to $13.51 billion after shares of the AI chipmaker tripled this year and fueled Wall Street’s technology rally
- Nvidia reported huge revenue and guidance in its earnings report on Wednesday
- Chipmaker has benefited greatly from the rise in generative AI
- Nvidia has been at the center of a tech rally this year fueled by AI optimism
Chipmaker Nvidia reported earnings on Wednesday that beat Wall Street expectations, boosted by rising demand for its computer chips that power nearly all of the world’s major artificial intelligence apps.
Nvidia’s adjusted revenue in the second quarter was $13.51 billion, a staggering 101 percent increase from a year ago and surpassing the $11.22 billion estimates of analysts polled by Refinitiv.
The company expects third-quarter revenue of approximately $16 billion, well above analyst expectations of $12.61 billion. Nvidia’s expectations suggest that revenue will grow 170 percent in the current quarter compared to a year ago.
Shares of the Santa-Clara, California-based company rose 6.3 percent in post-bell trading, after gaining more than 3 percent during the regular session.
Nvidia’s share price has more than tripled this year, with the chipmaker at the center of a technology rally on Wall Street fueled by optimism about AI’s potential.
Chip designer Nvidia on Wednesday reported profits well above Wall Street expectations, boosted by rising demand for its chips that power AI apps
Shares of the Santa-Clara, California-based company rose 6.3 percent in post-bell trading after gaining more than 3 percent in the regular session
Nvidia’s $1.16 trillion market cap makes it the world’s most valuable chipmaker by far, more than double the value of TSMC, the second most valuable chip company in the world.
In a note, Wedbush analyst Dan Ives mentioned the latest from Nvidia results and guidance “a historic moment for the technology sector, given the tidal wave of AI spending on the horizon in the coming years.”
“Software, digital media, Big Tech and of course chips will be the biggest beneficiaries of this release with Microsoft, in our view, along with Nvidia, the top pure play AI names,” he wrote.
Nvidia founder and CEO Jensen Huang said in a statement, “A new era of computing has begun. Businesses around the world are transitioning from general purpose computing to accelerated computing and generative AI.”
In a press release, Nvidia said its board had authorized an additional $25 billion in share buybacks.
Shares of Nvidia briefly hit an all-time high during the previous session.
“It’s not often that the fate of the market rests in the hands of just one stock, but it very much feels like that’s what’s going on right now,” said JJ Kinahan, CEO of IG North America.
Nvidia’s $1.16 trillion market cap makes it by far the most valuable chipmaker in the world, more than double the value of TSMC
Retail investors bought $186 million worth of Nvidia stock last week, JPMorgan said in a report Wednesday.
Nvidia dominates the market for high-end processors designed for AI computing, and its excellent outlook in the previous quarter saw its shares rise more than 20 percent and spark a broader tech rally.
Nvidia is part of the so-called Magnificent Seven group of mega-cap stocks, including Apple and Tesla, that have helped the recovery of nearly 16 percent of the S&P 500 this year.
Major Wall Street indices were up on Wednesday, with bullish investors counting on a strong report and forecast from the company to revive a US stock rally that had been stalled in recent weeks.