Shares of chip-making giant Nvidia witnessed a nearly 10% uptick in post-market trading as its Q2 earnings report exceeded Wall Street’s expectations, driven by an increasing demand for AI chips.
The Q2 earnings showcased an impressive revenue figure of $13.5 billion, marking an 88% leap from the first quarter and surpassing analysts’ projection of $11.2 billion by a substantial $2 billion margin.
Nvidia’s earnings per share (EPS) stood at $2.48, outperforming the predicted $2.08 according to Google Finance data. Year-over-year, this figure represented a remarkable 854% surge. “The inception of a new era in computing is evident. Companies globally are shifting from generic to accelerated computing, with a focus on generative AI,” stated Nvidia’s CEO and founder, Jensen Huang.
While major rivals, including Intel and Micron Technologies, are primarily directing their energies towards producing chips for conventional services like cloud computing and data centers, Nvidia has strategically invested in R&D for chips and graphic card units underpinning AI systems. This approach has enabled the company to gain a significant advantage from the prevalent AI surge.
Nvidia’s forward-looking statement anticipates a further increase in revenue, projecting it to touch $16 billion in the upcoming Q3, indicating a massive year-over-year rise of 170%.
Over the past 10 months, Nvidia’s stock price has witnessed an exponential growth of over 300%. This surge has pushed the company’s market cap to a colossal $1.16 trillion as per Google Finance data.
This remarkable achievement places Nvidia in the elite league of trillion-dollar companies, a membership that includes tech behemoths like Apple, Microsoft, Saudi Aramco, Alphabet (parent company of Google), and Amazon.
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