Nvidia reports its earnings after the close on Wednesday. Shares have more than tripled this year.
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Nvidia shares rose on Wednesday after the company reported strong quarterly earnings and provided a revenue forecast for the current October quarter that was well above expectations. The CEO of the company attributed the strong results to the radical shift towards the adoption of artificial intelligence.
Nvidia (stock symbol: NVDA) said adjusted earnings for the July quarter was $2.70 per share, compared to Wall Street’s estimate of $2.08, according to FactSet. Revenue was $13.5 billion — up 101% year-over-year, better than analyst expectations of $11.2 billion.
The big news was the expectations. For the current quarter, Nvidia provided the revenue forecast range with a midpoint of $16 billion, which is higher than the analyst consensus of $12.6 billion.
“A new era of computing has begun. Companies around the world are moving from general-purpose computing to accelerated computing and generative AI,” Jensen Huang, CEO of Nvidia Corporation, said in the release. “The race is on to adopt generative AI.”
Nvidia shares were up 7% in late trading shortly after the report.
Data center revenue for the chipmaker in the July quarter rose to $10.32 billion, up 141% from the previous quarter and up 171% from a year earlier. NVIDIA said data center sales were driven by demand from cloud service providers and large consumer internet companies.
Nvidia dominates the market for chips used in AI projects, and has been a major beneficiary of the generative AI trend. OpenAI unleashed a wave of excitement around the technology after launching its ChatGPT chatbot late last year.
Nvidia chips are favored by startups and companies because of its powerful software programming platform, known as CUDA. Developers have been building and sharing AI-related tools and software libraries for more than a decade on Nvidia’s proprietary platform, making it easy to quickly build AI applications.
As Wednesday’s earnings report approaches, Nvidia stock is up about 220% so far this year.
Write to Tae Kim at [email protected]
(tags for translation) Computers/Consumer Electronics
