Nvidia (NVDA) shares rose after it recorded another blowout earnings report recently, which easily beat the expectations of the analysts and announced a new share buyback program simultaneously.
The chipmaker’s success is being pushed by surging demand for GPU chips, data centre resources, and the rise of generative artificial intelligence.
Nvidia, a California-based chip company, stated its second-quarter revenue came in at around $13.51 billion, which is up 101% annually.
- Wall Street anticipated high returns for this year’s stock darling but had earnings expectations secured at $12.5 billion.
- There was another record carried out, which posted revenue of $10.32 billion, estimated to be an astonishing 171% increase over the same period in the previous year.
During the second quarter, the firm returned $3.38 billion to its shareholders through its stock repurchase program, but planned a further $25 billion in repurchases from them. Due to this, the net income of $6.18 billion increased by more than 800% over the previous year.
These earnings were the first since Nvidia shocked Wall Street analysts’ expectations with a 50% growth revision in its initial quarter. That launched the company to a $1 trillion market valuation alongside tech giants like Apple.
The company has seen surging demand for its GPU chips and data centre cloud resources as companies tumble to construct their own AI products. However, the management has forecasted revenue of $16 billion, which is roughly 2%, for its third quarter.
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative A.I.,” said Jensen Huang, CEO of the California-based chip company, Nvidia.
Ultimately, the shares of Nvidia climbed 5.6% in the extended trading period after the earnings release and were up 8.29% in premarket trading. In addition, the company shares have been up more than 200% to this date.
- Published By Team Genuine Reporter