Nvidia doubles its revenue as demand for AI chips accelerate, but bubble fears persist
Nvidia Corp. reported better-than-expected second-quarter earnings and revenue and also delivered bullish guidance for the current quarter and next full year, sending its stock up more than 4% in after-hours trading.
The company reported earnings before certain costs such as stock compensation of $2.22 per share, easily beating Wall Street’s forecast of $2.10 per share. Revenue for the period rose 106% from a year earlier, to $96.22 billion, above the $92.17 billion estimate. Net income for the quarter more than doubled, to $53.95 billion, up from $24.76 billion in the same period one year ago.
For the current quarter, it’s forecasting revenue of $108 billion, higher than the $104.2 billion analyst forecast.
Nvidia said the data center business accounted for the lion’s share of its revenue, generating sales of $89 billion in the quarter, up 117% from a year ago and surpassing the Street’s target of $86.33 billion. The data center unit now accounts for 92% of the company’s total sales.
