Text size
Nvidia reports earnings Wednesday after the close.
Akos Stiller/Bloomberg
Nvidia
provided a revenue forecast for the July quarter way above expectations, citing surging demand for its chips that enable artificial intelligence applications.
Its shares soared in after-hours trading.
The semiconductor company reported April quarter adjusted earnings per share of $1.09, compared with Wall Street’s consensus estimate of 92 cents, according to FactSet. Revenue came in at $7.2 billion which was better than analyst expectations of $6.5 billion. For the quarter, gaming revenue was down 38% from a year ago, but sales for its data center segment rose 14% thanks to demand from AI.
The big news was the outlook. For the current quarter, Nvidia gave a revenue forecast range of $11 billion at the midpoint, well above the analyst consensus of $7.2 billion.
Nvidia shares rose as much as 24% to $378 following the release.
“The computer industry is going through two simultaneous transitions—accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in the press release. “Our entire data center family of products—H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU—is in production. We are significantly increasing our supply to meet surging demand for them.”
These products are used to power the latest artificial intelligence applications that have riveted both investors and consumers alike.
Nvidia is a leading maker of chips used for videogames, artificial intelligence, and cloud computing applications inside PC and server hardware.
The company’s chips have…
..
