Nvidia Shines as Q2 Earnings Surge, Joins Trillion-Dollar Valuation Club
Summary:
Nvidia's shares surge nearly 10% in after-hours trading as Q2 earnings beat estimates with $13.5 billion in revenue, an 88% increase from Q1. The company anticipates further growth with a predicted revenue of $16 billion in Q3. Nvidia joins the trillion-dollar valuation club along with Apple, Microsoft, Saudi Aramco, Alphabet, and Amazon.
Shares of Nvidia, a leading computer chip manufacturer, surged nearly 10% in after-hours trading as the demand for AI chips soared, resulting in Q2 earnings that far exceeded Wall Street estimates. The company reported a remarkable $13.5 billion in revenue for the quarter, an 88% increase from Q1 and over $2 billion more than analysts had predicted. Furthermore, Nvidia's earnings per share (EPS) of $2.48 significantly surpassed consensus analyst estimates of $2.08, showcasing a staggering 854% YoY growth. In a statement, Nvidia's founder and CEO, Jensen Huang, highlighted the advent of a new era in computing and the race to adopt generative AI. While competitors like Intel and Micron Technologies focused on traditional chip manufacturing for data centers and cloud computing, Nvidia's research and development in AI-powered chips and graphics card units allowed it to capitalize on the AI boom. Looking ahead, the company anticipates revenue growth to reach $16 billion in Q3, reflecting a 170% YoY increase. With its market capitalization exceeding $1.16 trillion, Nvidia has joined the exclusive trillion-dollar valuation club, consisting of Apple, Microsoft, Saudi Aramco, Alphabet, and Amazon.
Published At
8/23/2023 11:53:13 PM
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