Nvidia (NVDA) reported second-quarter results after bubble Wednesday, which blew away already sky-high expectations for the graphics chip giant as the AI hype train continues to propel markets forward.
The company reported revenue of $13.51 billion, up 101% from last year, while adjusted earnings came in at $2.70 per share, up 429% from last year. Analysts had expected revenue to total $11.04 billion, while earnings per share would total $2.07, according to Bloomberg data.
Nvidia also issued a current quarter revenue forecast of $16 billion, plus or minus 2%, which far exceeds Wall Street’s already high expectations of $12.5 billion in revenue.
Shares of the graphics chipmaker rose as much as 9% in aftermarket trading on Wednesday to a record high of $515 per share.
Nvidia’s report was seen as an important test of the ongoing AI hype cycle, which has prompted companies of all stripes to delve into the technology in hopes of cashing in on the mania. But no one has seen their company’s actual fortunes change to the extent that Nvidia already enjoys it.
“A new era of computing has begun,” Nvidia CEO Jensen Huang said in a statement.
“Companies around the world are transitioning from general use to accelerated computing and generative AI.”
By segment, Nvidia reported data center revenue of $10.3 billion and gaming revenue of $2.5 billion, beating expectations of $8 billion and $2.4 billion, respectively.
Investors were already expecting Nvidia to deliver a great quarter after the company said revenue in its last quarter would be about $11 billion, plus or minus 2%.
Huang added, “During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software vendors announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI. “
The rapid increase in demand for Nvidia’s chips led some on Wall Street to question whether its main supplier TSMC could produce as many graphics processors as Nvidia’s customers needed.
The AI craze kicked into high gear in November 2022 when OpenAI debuted its generative AI app ChatGPT.
While artificial intelligence has been around for a while, ChatGPT’s popularity as one of the fastest growing apps in history has put the technology firmly on Wall Street’s radar.
Since then, technology companies ranging from Microsoft (MSFT) and Google (GOOG, GOOGL) to Meta (META) have introduced or announced their own generative AI tools and software.
Daniel Howley is the technical editor at Yahoo Finance. He has been involved in the tech industry since 2011. You can follow him on Twitter @DanielHowley.
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