Nvidia, the artificial intelligence chipmaker (NVDA), exceeded Wall Street’s expectations for its fiscal second quarter and provided higher guidance for the current period. NVDA stock experienced a significant jump in extended trading.
X
In the second quarter ending July 30, the Santa Clara-based company reported adjusted earnings of $2.70 per share and sales of $13.51 billion. This beat analysts’ predictions of $2.08 earnings per share on sales of $11.19 billion. Nvidia’s earnings increased by a remarkable 429% and sales surged by 101% compared to the previous year.
Nvidia forecasts sales of $16 billion for the current quarter, representing a 170% growth from the same period last year. Wall Street estimated revenue for the fiscal third quarter at $12.59 billion.
“A new computing era has begun,” stated Chief Executive Jensen Huang in a news release. “Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
Nvidia Stock Achieves Record High
Nvidia’s record data-center sales were the driving force behind its impressive quarterly performance, with data-center revenue growing by 171% to $10.32 billion in the second quarter.
In after-hours trading, NVDA stock surged by 9.5% to reach $516. During regular trading hours on Wednesday, NVDA stock increased by 3.2% to close at $471.16.
Nvidia reached its all-time high in regular-session trading, reaching $481.74 on Tuesday.
Three months ago, Nvidia stock rose by 24% the day after the company delivered excellent financial results and raised its outlook.
NVDA Stock Features on 2 IBD Lists
So far this year, NVDA stock has risen by 222% due to AI-related news. Nvidia has emerged as a leader in semiconductors, software, and services for artificial intelligence applications, including generative AI.
Generative AI has the ability to create content such as articles, images, videos, and music based on simple descriptive phrases. It utilizes artificial intelligence systems to analyze vast amounts of data and generate new works, including computer programming code.
“During the quarter, major cloud service providers announced massive Nvidia H100 AI infrastructures,” revealed Huang. “Leading enterprise IT system and software providers announced partnerships to bring Nvidia AI to every industry. The race is on to adopt generative AI.”
NVDA stock is listed on IBD’s Leaderboard and Tech Leaders lists.
For more stories on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on Twitter at @IBD_PSeitz.
YOU MAY ALSO LIKE:
Chipmaker Analog Devices Misses Targets As Inventories Remain High
Amazon Gets An Earnings Lift, But Is It Back On The Growth Track?
Learn How To Time The Market With IBD’s ETF Market Strategy
See Stocks On The List Of Leaders Near A Buy Point
Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
