After-hours trading on Nvidia shares increased by about 10% as the company outperformed Wall Street analyst forecasts by more than $2 billion.
After-hours trading on Nvidia shares increased by about 10% as the company outperformed Wall Street analyst forecasts by more than $2 billion.
After-hours trading saw a roughly 10% increase in shares of computer chip maker Nvidia as a result of the company exceeding Wall Street expectations for Q2 results due to the strong demand for AI processors.
The business reported a staggering $13.5 billion in revenue for the quarter in its Q2 financial report, an 88% rise from the prior quarter. The actual revenue exceeded the $11.2 billion expert forecast for the corporation by nearly $2 billion.
Additionally, according to information from Google Finance, Nvidia reported $2.48 earnings per share (EPS), which was higher than the $2.08 consensus analyst expectation. The business’s Q2 EPS increased by an astounding 854% year over year.
“A new era of computing has started. Companies all across the world are switching from general-purpose computing to accelerated computing and generative AI, according to a statement from NVIDIA founder and CEO Jensen Huang.
The rush to deploy generative AI has begun, Huang continued.
Nvidia has honed in research and development for chips and graphics card units that power AI systems, allowing it to significantly profit from the recent AI boom. Competitors like Intel and Micron Technologies have continued to focus the majority of their efforts on manufacturing chips for existing services like data centres and cloud computing.
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By Q3 of this year, according to the company’s forecast, revenue will reach $16 billion, a 170% rise over the same quarter last year.
According to data from Google Finance, Nvidia’s share price has increased by more than 300% over the past 10 months, pushing its market value to $1.16 trillion at the time of publication.
Nvidia has experienced remarkable development, joining an elite group of just six businesses with a capitalization of more than $1 trillion: Apple, Microsoft, Saudi Aramco, Alphabet (Google), and Amazon.
