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.”
Featured Coverage of this Story
From the CenterWall St falls as Nvidia boost fades, caution sets in ahead of Powell speech
Wall Street's main indexes fell on Thursday, as an initial boost from Nvidia's stellar forecast fizzled out and investors turned cautious ahead of Federal Reserve Chair Jerome Powell's speech later this week that will offer clues on the interest rate path.
Shares of Nvidia (NVDA.O) pared much of their earlier gains and were last up only 1.4%, slipping from a record high of $502.66 hit earlier in the session.
Analysts pointed to profit-taking after a strong run of gains heading into the chip designer's second-quarter results.
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From the RightNvidia continues AI-driven surge, announces $25B stock buyback
Nvidia exceeded analysts’ expectations with its latest earnings announcement, riding the artificial intelligence (AI) boom on its advanced chips and announcing a $25 billion stock buyback.
Santa Clara, California-based Nvidia has emerged as a powerhouse in the AI space in large part due to its advanced computer chips, which are used in most generative AI apps and the training of large language models that power them. Nvidia’s earnings results from the second quarter of the company’s fiscal year showed that its momentum is continuing to build.
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From the LeftNvidia’s quarterly sales double on the back of AI boom
The artificial intelligence boom continues to fuel a blockbuster year for chipmaker Nvidia.
Nvidia’s stock jumped as much as 9% in after-hours trading Wednesday after the Santa Clara, California-based company posted year-over-year sales growth of 101%, to $13.5 billion for the three months ended in July — a new record for the company.
The results were even stronger than the $11.2 billion in revenue that Wall Street analysts expected. The company’s non-GAAP adjusted profits grew a stunning 429% from the same period in the prior year to $2.70 per share,...