Nvidia's second-quarter earnings beat Wall Street expectations

2023-08-24 01:42:00

Author: TOM MITCHELHILL, COINTELEGRAPH; Compiler: Songxue, Jinse Finance

Shares of computer chip maker Nvidia (Nvidia ) surged nearly 10% in after-hours trading as demand for artificial intelligence chips surged and the company posted second-quarter earnings that sharply beat Wall Street expectations.

**In its second-quarter earnings report, the company reported revenue of $13.5 billion for the quarter, up 88% from the first quarter. The company’s revenue figure beat analysts’ forecast of $11.2 billion by more than $2 billion. **

Also, Nvidia reported earnings per share (EPS) of $2.48, beating analysts’ consensus estimate of $2.08, according to Google Finance. The company’s second-quarter earnings per share rose a staggering 854% year-over-year.

Nvidia’s (NVDA) Q2 earnings summary. Source: NVIDIA

“A new era of computing has begun. Companies around the world are transitioning from general-purpose computing to accelerated computing and generative artificial intelligence.” NVIDIA founder and CEO Jensen Huang said in a statement.

“The race to adopt generative AI is on,” Huang added.

Nvidia (NVDA) share price in the last 24 hours. Source: TradingView

While rivals such as Intel and Micron Technology continue to focus most of their efforts on making chips for existing services such as data centers and cloud computing, Nvidia has honed in on research and development of chips and graphics units that power artificial intelligence systems. trained so that it can take full advantage of the recent boom in artificial intelligence.

Looking ahead,** the company expects revenue to grow to $16 billion in the third quarter of this year, up 170% year-over-year. **

According to Google Finance, Nvidia stock has soared more than 300% in the past 10 months, and its market value has exceeded $1.16 trillion as of press time.

Rapid growth has brought Nvidia into an exclusive club of just six companies – Apple, Microsoft, Saudi Aramco, Alphabet (Google) and Amazon – with valuations topping trillion dollars.

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