Semiconductor giant Nvidia has released its second quarterly revenue report, which has blown away analyst expectations. This year’s artificial intelligence (AI) hype keeps pushing markets forward, and Nvidia is leading the pack.
On Aug. 23, the graphics chip giant reported revenue of $13.51 billion, a jump of 101% from last year and 88% from the previous quarter. Moreover, analysts had expected revenue to come in at $11.04 billion.
Nvidia Capitalizes on AI
Furthermore, adjusted earnings came in at $2.70 per share, up a whopping 429% from last year and 148% from the previous quarter.
Jensen Huang, founder and CEO of Nvidia, commented on the role of AI in the firm’s success:
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
The Nvidia revenue report has been a bellwether for the ongoing AI hype cycle. It has pushed all types of tech companies, including crypto and blockchain firms, into the technology in hopes of cashing in.
The firm reported data center revenue of $10.3 billion and gaming revenues of $2.5 billion. They both beat analyst forecasts of $8 billion and $2.4 billion, respectively.
Huang added that major cloud service providers announced massive Nvidia H100 AI infrastructures during the quarter.
“Leading enterprise IT system and software providers announced partnerships to bring Nvidia AI to every industry. The race is on to adopt generative AI.”
Nvidia’s Chief Financial Officer Colette Kress said that the company is seeing “tremendous demand.”
“Going into fiscal 2024, we already have demand visibility … that takes us into the new calendar year as well. We have tremendous demand and we will continue to ramp our supply into the next year.”
NVDA Price Reacts
Nvidia stock surged 9% on the day to reach an all-time high of $502.10 in after-hours trading. The company has had an epic year, with NVDA prices skyrocketing 250% since January 1.
The company also announced a new $25 billion share repurchase plan. This would enable it to buy back stock during its current fiscal year.
Since November 2022, when OpenAI unleashed ChatGPT, tech giants such as Microsoft, Meta, and Google have jumped on the bandwagon with their own AI projects.
Crypto firms such as Hive Blockchain have also rebranded and refocused to tap into the AI hype train.
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