Headline RoundupAugust 24th, 2023

Nvidia Stock Surges After Earnings Exceed Expectations From AI Demand

Summary from AllSides News Team

Chipmaker Nvidia exceeded earnings expectations as a result of surging computer chip demand for artificial intelligence programs. 

Details: In a report released this week, Nvidia posted 101% year-over-year sales growth and $13.5 billion in revenue the previous quarter, beating the $11.2 billion in revenue expected by analysts. The report sparked a spike in Nvidia’s stock Wednesday evening, hitting a record high of $502.66. Following this, Nvidia announced a $25 billion stock buyback. The surge cooled by midday Thursday, which Reuters (Center bias) attributed to stockholders taking profits and a general worry that Federal Reserve Chair Jerome Powell’s speech Friday will disrupt the market. 

Key Quotes: Nvidia CEO Jensen Huang released a statement reading, “A new computing era has begun. The industry is simultaneously going through two platform transitions: accelerated computing and generative AI. Data centers are making a platform shift from general purpose to accelerated computing. The trillion dollars of global data centers will transition to accelerated computing to achieve an order of magnitude better performance, energy efficiency and cost.”

How the Media Covered It: Outlets covered the report modestly. Fox Business (Lean Right bias) noted that Nvidia is currently attempting to rework a chip to bypass Biden Administration restrictions on selling certain chip technologies to China. The article quoted Nvidia’s chief financial officer stating that additional restrictions on selling chips to China would “result in a permanent loss of an opportunity for U.S. industry to compete and lead in one of the world’s largest markets.”

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