Nvidia's Q2 Earnings Surpass Expectations, Yet Stock Slips Amid High Investor Anticipation

Nvidia stock slips despite 2Q earnings topping Wall Street estimates, high AI chip demand

Nvidia may have exceeded Wall Street estimates as its profit jumped -- buffeted by the chipmaking dominance that has cemented Nvidia's place as the poster child of the artificial intelligence boom -- but investors seemed less than impressed. The company reported a net income of to $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122% from a year ago and 15% from the previous quarter. By comparison, S&P 500 companies overall are expected to deliver just 5% growth in revenue for the quarter, according to FactSet. Still, Nvidia shares slipped nearly 4% in after-hours trading. Ryan Detrick, chief market strategist at Carson Group, said that despite growing revenue "it appears the bar was just set a tad too high this earnings season." "Death, taxes, and NVDA beats on earnings are three things you can bank on," Detrick said. "Here's the issue. The size of the beat this time was much smaller than we've been seeing. Even future guidance was raised, but again not by the tune from previous quarters." The company reported second-quarter adjusted earnings per share of 68 cents per share, up from 27 cents a year ago. Nvidia said it expects third quarter revenue to grow to $32.5 billion, plus or minus 2%. Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants continue to spend heavily on the company's chips and data centers needed to train and operate their AI systems. "The people who are investing in Nvidia infrastructure are getting returns on it right away," Jensen Huang, founder and CEO of Nvidia, said on a call with analysts. "It's the best ROI infrastructure, computing infrastructure investment you can make today." Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth over $3 trillion. Nvidia CFO Colette Kress said during the analyst call that the company is planning to increase production of its Blackwell AI chips beginning in the fourth quarter and continuing through fiscal 2026. Kress said Nvidia expects several billion dollars in Blackwell revenue in the fourth quarter, with shipments of its Hopper graphics processor unit, or GPU, expected to increase in the second half of fiscal 2025. In an interview with Bloomberg Television, Huang said the company will "have a great next year as well." Through the year's first six months, Nvidia's stock price soared nearly 150%. At that point, it was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general. That's why analysts warn of a selloff if Wall Street sees any indication that AI demand is waning. Dan Ives, an analyst with Wedbush Securities, called the earnings part of a "historic, meteoric rise from Nvidia and the godfather of AI, Jensen (Huang)." Investors, Ives added, are picking apart "robust numbers" and trying to find holes in them. Although Nvidia said it estimates about $32.5 billion in revenue in the third fiscal quarter, some analysts expected a slightly higher figure, he said. "I view it as kind of like splitting hairs," Ives said. The demand for AI technology is only accelerating, he added, echoing Huang's previous statements that the world is in the midst of the next industrial revolution. "This is the most watched earnings -- not just in tech, but in the market, in many years," he said. "Investors will initially overreact to any sort of short-lived weakness. But I believe this actually put more fuel into the tank of the bull market."

Nvidia Beat Earnings Expectations Again. Investors Aren't Impressed

Nvidia has reported more than $30 billion in sales in its fiscal second quarter, up 122% from the same period a year ago, and ahead of the $28.7 billion Wall Street analysts had expected. Nvidia once again beat Wall Street's expectations when it reported earnings on Wednesday. But for a company that's been on a stunning growth streak over the past two years, merely great numbers may no longer be enough to impress investors. The AI chipmaker -- whose stock has helped power the market's feverish rally this year -- reported more than $30 billion in sales in its fiscal second quarter, up 122% from the same period a year ago, and ahead of the $28.7 billion Wall Street analysts had expected. Profits from the quarter also more than doubled to $16.6 billion, up from the $15 billion analyst projection. The company also posted modestly better-than-expected sales guidance for the current quarter, another encouraging sign for investors. Still, Nvidia shares dipped as much as 5% in after-hours trading following the report. Nvidia's peerless AI processors have helped fuel a boom in AI technologies across the tech sector, as well as an AI craze on Wall Street. The company's shares are up a dizzying 154% this year and more than 3,000% over the past five years, thanks to the AI frenzy. The company's market value is now over $3 trillion, one of only three US companies ever to achieve that milestone. But major questions have started to emerge about the sustainability of the AI hype cycle, in large part because of uncertainty about whether -- and how soon -- the technology will contribute to tech giants' bottom lines. What's more, there's only so long any company can continue to grow at such a fast clip. While Nvidia beat Wall Street's expectations for the top and bottom lines, investors appeared disappointed that it didn't beat by a wider margin. And rumors about potential delays in the company's latest AI chips, called Blackwell, had contributed to worries leading into the earnings report, although executives said during Wednesday night's earnings call that Nvidia still expects to begin earning revenue from Blackwell in this fiscal year. "While the numbers indicate that the AI revolution remains alive and well, the smaller beat compared to the previous quarters adds to the multiple warning signs across the tech space earlier in this earnings season," Investing.com senior analyst Thomas Monteiro said in an email. Nvidia CEO Jensen Huang said that while demand for Blackwell "far exceeds its supply" in a Bloomberg interview Wednesday, "we're going to have lots and lots of supply, and we will be able to ramp starting in Q4." The trajectory of Nvidia shares has power ripple effects across the broader market, thanks to the company's outsized, roughly 7% weighting in the S&P 500. The company's "earnings report has become the world's most important financial news event," Bespoke Investment group wrote in a Wednesday note. Despite investors' skittishness, business doesn't appear to be slowing down for the chipmaker yet. Nvidia's data center business continues to be the leading driver of its success, a sign that the demand for AI infrastructure in the tech sector is not slowing down. The company raked in nearly $26.3 billion in data center sales, which comprised 87% of its total revenue. "The company continues to benefit from a market paradox: Big Tech's aggressive AI investment strategies drive massive demand for Nvidia's chips, even as these same companies invest in developing their own silicon," Emarketer technology analyst Jacob Bourne said in an emailed statement. Indeed, Silicon Valley heavyweights continue to expand their investments in AI infrastructure, much of which will go to purchasing chips from Nvidia. In their own earnings reports earlier this month, Google, Microsoft and Meta Platforms all signaled that they would be upping their AI spending. Meta said it expects full-year capital expenditures to be between $37 billion and $40 billion, raising the low end of its guidance from the previous quarter by $2 billion. Microsoft said it expects to spend more in fiscal year 2025 than its $56 billion in capital expenditures from 2024. Google projected capital expenditure spending "at or above" $12 billion for each quarter this year. (Even for extremely rich companies, those are big numbers -- for Google, its second quarter capital expenditures amounted to about 17% of its total sales). Despite concerns about potential Blackwell delays, research firm Third Bridge estimates that 60-70% of AI model training at so-called hyperscalers like Microsoft and Google will take place using the new Nvidia chips by the end of next year, according to analyst Lucas Keh. Nvidia CEO Jensen Huang defended the company's runway during a call with analysts Wednesday following the report, reminding them that the company's chips don't just power AI chatbots but also ad targeting systems, search engines, robotics and recommendation algorithms like the ones behind social media feeds. "People who are investing in Nvidia infrastructure are getting returns on it right away," Huang said, adding that the company's more powerful chips process data more efficiently, saving clients money. "In the future, every single data center will have GPUs," the kind of chip that Nvidia has become known for, Huang said. Together, those factors should mean that even if the Nvidia stock hype -- which has reached such a point that people had organized earnings call listening parties as if it were a championship game -- dies down, the company's fundamentals should remain strong for the foreseeable future.

Nvidia can't escape shadow of AI spending fears

Nvidia has made life at the top look easy. But staying there is going to be anything but. The chip maker, which has gone from a niche videogame component supplier to a $3 trillion enterprise in just a few years, put up another round of strong results Wednesday. Its now-dominant data center segment increased revenue to $26.3 billion -- more than 2½ times what that business generated a year earlier. Adjusted operating income for the quarter more than doubled year over year to $19.9 billion. Nvidia's overall top and bottom lines beat Wall Street's targets, as did the company's forecast for the current period ending in October. But the magnitude of those beats was smaller than what Nvidia has been delivering over the past year, as its business exploded on booming demand for artificial-intelligence capabilities from the world's largest tech giants. Expectations from investors have blown up right along with it. Nvidia's projected revenue of $32.5 billion for the current quarter ending in October was 2% ahead of Wall Street's targets; the company's projection for the same period last year beat analysts' consensus by 28%, according to FactSet data. Also, the new products that Nvidia is building to stay well ahead of the competition are rising significantly in complexity -- weighing a bit on the company's gross margin line. But even that is a bit of a nitpick; Nvidia's gross margin of 75.1% for the most recent quarter was down 3 points from three months earlier, but well above the 65% the company has averaged over the past four years. And even at 75%, Nvidia is commanding a higher gross margin than all but one of the other companies on the PHLX Semiconductor Index, according to data from S&P Global Market Intelligence. Nvidia is doing fine, in other words. The stock slipped about 7% in after-hours trading Wednesday, following the company's report and conference call. That is a minor haircut for a company that has seen its market cap increase more than fivefold in the past 18 months. But that increase has put Nvidia under an intense spotlight befitting a company valued on par with Microsoft while generating less than half of the software giant's annual revenue. The chip company with the funny name has quickly become a household name; Wednesday's earnings call even spawned watch parties among investors and fans eager to track the action. Such an intense spotlight is rarely forgiving for long, especially given the growing concern investors have over the AI spending being committed by Nvidia's biggest customers. In their own recent earnings reports, Microsoft, Amazon, Meta Platforms and Google's parent, Alphabet, reported combined capital spending of $58.5 billion just for the June quarter -- up 64% year over year. All four projected that spending would stay elevated this year and into next, and all pointed to "AI infrastructure" as the main driver. That has been great news for Nvidia, which commands the lion's share of the AI chip market. But the durability of that spending is still a question -- especially if actual demand for generative AI services doesn't materialize at the pace that tech optimists currently envision. Questions about that spending outlook dominated Nvidia's call Wednesday. Chief Executive Officer Jensen Huang waxed confident, predicting that "next year is going to be a great year." At a $3 trillion market cap, Nvidia's biggest challenge these days is that great isn't always good enough.

Nvidia results show AI boom continues despite recent bubble fears

Sorry, a summary is not available for this article at this time. Please try again later. SAN FRANCISCO -- Semiconductor company Nvidia reported financial results in-line with financial analysts' expectations Wednesday, showing sustained demand in buying chips needed for cutting edge artificial intelligence products. That could calm recent fears from some analysts and investors that the recent surge in AI investment may ultimately become a bust -- at least until Nvidia's next quarterly update. Nvidia's total revenue in the second quarter of this year was $30 billion, slightly above expectations and 122 percent higher than for the same period in 2023. The majority of that came from Nvidia's sales to tech companies including Amazon, Google, Meta and Microsoft building out data centers to power AI projects for themselves or their own customers. That role as a crucial supplier to software companies developing AI tools such as chatbots has made Nvidia one of the world's most valuable companies at over $3 trillion and a kind of weather vane for the current AI boom. Tech giants have all spent billions on the company's chips over the last two years as they compete with one another to develop new AI algorithms and try to find ways to sell the products to their consumers. Earlier this summer, some analysts and venture capitalists began raising concerns that the excitement around AI and rampant spending on AI chips was potentially creating a financial bubble. The value of the biggest tech companies, which had rocketed up during 2023, plateaued over the past few months as investors become more skeptical that Big Tech will reap profits from the massive surge of investment that has lifted Nvidia. "While the numbers indicate that the AI revolution remains alive and well, the smaller beat compared to the previous quarters adds to the multiple warning signs across the tech space earlier in this earnings season," said Thomas Monteiro, a senior analyst at Investing.com. "However, investors should not fear a deeper sell-off. The massive growth in data center chips shows that companies worldwide still have no other option but to keep ramping up their AI expenses, regardless of the costs." Nvidia's financial results have become an obsession for Wall Street professionals and small-time retail investors alike. The company's value has increased ninefold since the end of 2022, enriching scores of people who'd held the stock before the recent surge in interest and investment in AI -- and instilling a deep fear of missing out among other investors. As the company reported earnings Wednesday, people around the world pored over the company's press release and commentary from the company's chief financial officer. The stock seesawed up and down as investors digested the news, before settling down around 6 percent in aftermarket trading. Nvidia beat expectations on most metrics, but the company also said that it had made a change in a key step of the production process for its new "Blackwell" computer chips, something that had been previously reported but not confirmed by Nvidia. During a conference call after the earnings results were posted, analysts peppered Nvidia chief executive Jensen Huang with questions about whether the huge amount of money being invested to buy his company's chips would be worth it in the end. Huang repeated arguments he's made before that the entire world is undergoing a transition to using AI, and that demand will keep growing.

Nvidia Q2 earnings blow past expectations

Why it matters: The company has become synonymous with AI, but that doesn't mean it can relax. Peers, startups and even its own customers are increasingly trying to encroach on its territory. Reality check: Despite this stepped-up race in the AI chip game, Nvidia is reportedly under investigation from the DOJ related to whether it has abused its position of market dominance. By the numbers: Demand for Nvidia's AI products and services generated a record $30 billon in revenue in its latest fiscal quarter. The company also projects revenue for this current quarter to reach $32.5 billion, which is higher than analyst consensus. Context: Nvidia has now delivered four straight quarters of triple-digit percentage gains in sales and earnings on a year-over-year basis as its chips and systems remain in high demand as generative AI training has been "accelerating," CEO Jensen Huang observed last quarter. The big picture: Every earnings report from Nvidia is now a crucial one as it's become the biggest and clearest barometer for the world's interest in AI. What we're watching: Shares of the company fell after hours despite the strong results, reflecting the abnormal expectations placed on the company, as well as the inherent volatility of the stock.

Nvidia stock slips even after earnings top Wall Street estimates and demand for AI chips surge

Nvidia may have exceeded Wall Street estimates as its profit jumped -- buffeted by the chipmaking dominance that has cemented Nvidia's place as the poster child of the artificial intelligence boom -- but investors seemed less than impressed. The company reported a net income of to $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122% from a year ago and 15% from the previous quarter. By comparison, S&P 500 companies overall are expected to deliver just 5% growth in revenue for the quarter, according to FactSet. However, Nvidia shares slipped nearly 4% in after-hours trading. Nvidia to host flagship AI Summit in India in October Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants continue to spend heavily on the company's chips and data centers needed to train and operate their AI systems. The company reported second-quarter adjusted earnings per share of 68 cents per share, up from 27 cents a year ago. Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth over $3 trillion. Through the year's first six months, Nvidia's stock soared nearly 150%. At that point, the stock was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general. That's why analysts warn of a selloff if Wall Street sees any indication that AI demand is waning. The Santa Clara, California-based company carved out an early lead in AI applications race, in part because of founder and CEO Jensen Huang's successful bet on the chip technology used to fuel the industry. The company is no stranger to big bets. Nvidia's invention of the graphics processor unit, or GPU, in 1999 helped spark the growth of the PC gaming market and redefined computer graphics. Copy link Email Facebook Twitter Telegram LinkedIn WhatsApp Reddit READ LATER Remove SEE ALL PRINT

Nvidia's earnings report shows AI boom isn't over yet

Why it matters: Nvidia chips have become the processors of choice for AI systems and also made Nvidia one of the world's most valuable companies. Driving the news: Nvidia posted better-than-expected quarterly earnings and revenue along with a forecast for the current quarter that also exceeded analyst expectations. Yes, but: Investors appear to have already priced in some of the future growth, sending shares lower after the report. The big picture: Nvidia's strong results come even amid growing competition both from rival semiconductor firms as well as efforts by internet giants to design their own AI chips. What's next: Huang predicted Nvidia will benefit next year and beyond from a continued shift away from traditional data center processors to the types of GPUs made by Nvidia.

Nvidia stock slips even after earnings top Wall Street estimates and demand for AI chips surge

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, N.Y., Aug. 28. Reuters-Yonhap Nvidia may have exceeded Wall Street estimates as its profit jumped -- buffeted by the chipmaking dominance that has cemented Nvidia's place as the poster child of the artificial intelligence boom -- but investors seemed less than impressed. The company reported a net income of to $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122 percent from a year ago and 15 percent from the previous quarter. By comparison, S&P 500 companies overall are expected to deliver just 5 percent growth in revenue for the quarter, according to FactSet. Still, Nvidia shares slipped nearly 4 percent in after-hours trading. Ryan Detrick, chief market strategist at Carson Group, said that despite growing revenue "it appears the bar was just set a tad too high this earnings season." "Death, taxes, and NVDA beats on earnings are three things you can bank on," Detrick said. "Here's the issue. The size of the beat this time was much smaller than we've been seeing. Even future guidance was raised, but again not by the tune from previous quarters." The company reported second-quarter adjusted earnings per share of 68 cents per share, up from 27 cents a year ago. Nvidia said it expects third quarter revenue to grow to $32.5 billion, plus or minus 2 percent. Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies , as tech giants continue to spend heavily on the company's chips and data centers needed to train and operate their AI systems. "The people who are investing in Nvidia infrastructure are getting returns on it right away," Jensen Huang, founder and CEO of Nvidia, said on a call with analysts. "It's the best ROI infrastructure, computing infrastructure investment you can make today." Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia's specialized chips over the last year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth over $3 trillion. A person walks past a sign outside a Nvidia office building in Santa Clara, Calif., Aug. 7. AP-Yonhap Nvidia CFO Colette Kress said during the analyst call that the company is planning to increase production of its Blackwell AI chips beginning in the fourth quarter and continuing through fiscal 2026. Kress said Nvidia expects several billion dollars in Blackwell revenue in the fourth quarter, with shipments of its Hopper graphics processor unit, or GPU, expected to increase in the second half of fiscal 2025. In an interview with Bloomberg Television, Huang said the company will "have a great next year as well." Through the year's first six months, Nvidia's stock price soared nearly 150 percent. At that point, it was trading at a little more than 100 times the company's earnings over the prior 12 months. That's much more expensive than it's been historically and than the S&P 500 in general. That's why analysts warn of a selloff if Wall Street sees any indication that AI demand is waning. Dan Ives, an analyst with Wedbush Securities, called the earnings part of a "historic, meteoric rise from Nvidia and the godfather of AI, Jensen (Huang)." Investors, Ives added, are picking apart "robust numbers" and trying to find holes in them. Although Nvidia said it estimates about $32.5 billion in revenue in the third fiscal quarter, some analysts expected a slightly higher figure, he said. "I view it as kind of like splitting hairs," Ives said. The demand for AI technology is only accelerating, he added, echoing Huang's previous statements that the world is in the midst of the next industrial revolution. "This is the most watched earnings -- not just in tech, but in the market, in many years," he said. "Investors will initially overreact to any sort of short-lived weakness. But I believe this actually put more fuel into the tank of the bull market." (AP)

Nvidia Revenue Jumps 122% in Positive Sign for Tech's A.I. Boom

This summer, Wall Street and Silicon Valley began to question whether generative artificial intelligence could produce enough benefits to justify its staggering costs. But the chipmaker Nvidia showed on Wednesday that enthusiasm for A.I. is still running hot. The company, a bellwether for A.I. spending, blew past Wall Street's expectations for another quarter, reporting that its sales and profit had more than doubled during the three months that ended in July. It also projected that sales in the current quarter would increase 80 percent from a year ago, exceeding earlier estimates. Revenue was $30.04 billion in the quarter, a 122 percent increase, surpassing its $28 billion estimate in May. Net income rose 174 percent to $16.95 billion, eclipsing the most recent quarterly profits of Meta and Amazon. Shares in the company, which has been one of the market's hottest stocks, fell by as much as 4 percent in after-hours trading, as some investors had been looking for even higher projected revenue in the current quarter. The company said it would spend an additional $50 billion on repurchasing its own shares. In the quarter ending in July, it spent $15.4 billion on share repurchases and dividends. The results speak to how Nvidia continues to dominate the market for A.I. chips, even as it faces rising competition and staggering expectations. Years before other big chip companies, Nvidia's chief executive, Jensen Huang, bet that semiconductors known as graphics processing units, or GPUs, would make A.I. systems possible. He built the company over the ensuing years to corner the market.

Nvidia is still on fire -- but its trajectory is looking a bit more like Apple

This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. But since then, its stock has faced some volatile swings. It lost about $750 billion in the space of six weeks after its June peak as big customers like Google and Microsoft shared signs that their massive capital expenditure is unlikely to yield returns anytime soon. So, as investors prepared to hear Nvidia report its second-quarter earnings after the bell on Wednesday, they were hoping for some answers on what the future might look like for one of the AI industry's most-hyped businesses. Nvidia's response suggests it may start to resemble Apple's trajectory. Here's why. For some time, investors had been told the same story by Nvidia's CEO Jensen Huang: that the generative AI boom was made possible thanks to his company's chips, or GPUs, and with the tech sector all in on AI now, demand for them would keep flowing. Nvidia's first-quarter earnings this year reassured investors that this was very much the case. It reported quarterly revenue of $26 billion, up a staggering 262% from the same quarter a year ago. Second-quarter earnings, however, seemed to be less reassuring. Nvidia shares fell 7% in after-hours trading on Wednesday after it reported a smaller 122% year-on-year increase in quarterly revenue of $30 billion. It's worth noting that this is a record for Nvidia. It has never generated as much revenue in three months as it has done in its last quarter. And guidance for the next quarter suggests a record will be set again. This all points to Nvidia still being a business that is going strong, albeit one that is facing a slowdown similar to the one Apple has witnessed over the years. The smartphone maker has remained one of Silicon Valley's most robust companies despite its biggest revenue driver, the iPhone, facing a slowdown in sales for a number of reasons. For one, the smartphone market has become increasingly saturated since the iPhone made its debut in 2007. Consumers have also become less enthused about buying devices that have seen iterative improvements each year. It's a big reason Apple's net sales declined to $383.3 billion in its last full fiscal year, down from $394.3 billion the previous year. Nvidia investors may not need to prepare for revenue to decline anytime soon, but the slower growth shared on Wednesday suggests the company could end up on a similar trajectory to Apple if growth continues to slow in future quarters. Both have underlying revenue drivers in motion, but with growth becoming less stellar than it had been in the past. Huang, of course, is optimistic about demand rising later this year for the next-generation Blackwell GPU and has set Nvidia up for an annual chip release like Apple's annual release of the iPhone. With the generative AI boom expected to dominate the tech industry for years to come, GPUs will remain necessary purchases for companies seeking to lead on AI, meaning Nvidia shouldn't see a sudden exodus of buyers. Wedbush analysts including Dan Ives commented in a research note: "AI GPU demand is way outstripping supply for Nvidia at this juncture and the Street should come away from these results as a very bullish indicator for the broader tech sector with more shock and awe rather than a shrug of the shoulders in our view." That said, pressure is on Huang's customers to prove to their investors that buying Nvidia GPUs will prove lucrative sooner rather than later. If they struggle to do that, expect demand to slow further.

Nvidia Q2 earnings: NVDA beats on revenue as AI stocks boom - Fast Company

Notably, Nvidia's revenue grew 122% year-over-year, as demand for its processors continues to surge. The company also announced a $50 billion stock buyback. "Nvidia achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI," said Jensen Huang, Nvidia's founder and CEO, in a statement. The earnings report -- which was perhaps one of the most anticipated earnings releases in recent memory -- serves as a signal as to whether the artificial intelligence boom over the past year and a half should continue. Strong earnings, in this case, would be a signal that demand is still high, whereas weak earnings, conversely, could be a signal that the rally is petering out.

Nvidia Is Wall Street's 2nd-Most Valuable Company. How It Keeps Beating Expectations, by the Numbers

Nvidia has once again turned out quarterly results that easily exceeded Wall Street's forecast s. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue more than doubled in the latest quarter from the same period a year earlier, Nvidia said Wednesday. The company expects further revenue growth in the current quarter that ends in October. Investors will be watching to see if demand for the company's products can maintain its red-hot pace. The company's journey to be one of the most prominent players in AI has produced some eye-popping numbers. Here's a look. $3.156 Trillion Nvidia's total market value as of the close Wednesday. It's ahead of Microsoft ($3.076 trillion) but behind Apple ($3.457 trillion) in the battle for most valuable company. One year ago, the company's market was around $1.15 trillion. 154% Gain in Nvidia's stock price so far this year as of the close of trading Wednesday. The shares fell about 4% in after-hours trading following the release of the company's earnings. 30% That's how much of the S&P 500's gain for the year through June came only from Nvidia. $26.3 billion Nvidia's revenue from its data center business for the quarter ended July 31, up 154% from a year ago. Overall revenue rose 122% from a year ago to $30 billion. By comparison, revenue growth for all the companies in the S&P 500 is expected to be about 5% for the latest quarter. $32.5 billion Nvidia's estimate for overall revenue in the third quarter, "plus or minus 2%." That translates to a range of $31.85 billion to $33.15 billion, compared to Wall Street's estimate of $31.7 billion. Revenue in the year-ago third quarter totaled $18.1 billion. $121.1 billion Analysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be about double its revenue for fiscal 2024 and more than four times its receipts the year before that. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Nvidia revenue more than doubles as AI spending remains strong

Nvidia's revenue more than doubled in the past quarter, continuing the US chipmaker's run of blockbuster growth and surpassing consensus estimates. Revenue in the three months to the end of July was $30bn, up 122 per cent from a year ago. Analysts had expected $28.7bn. Nvidia is expecting $32.5bn in revenue for the current quarter, plus or minus 2 per cent, about $1bn higher than consensus expectations. The company also authorised another $50bn in share buybacks. Nvidia's hotly anticipated earnings report has been watched by investors for signs of how the artificial intelligence boom that has gripped the tech sector is faring. Nvidia shares fell in after-hours trading immediately after the release.