Nvidia reports 122% revenue growth due to surging demand for data center chips Nvidia reports earnings after the bell that beats Wall Street. Today we will discuss about NVDA stock split: Earnings prediction & report,NVIDIA Corporation,$30 billion.
NVDA stock split: Earnings prediction & report,NVIDIA Corporation,$30 billion
NVIDIA (NASDAQ: NVDA) today reported revenue of $30.0 billion for the second quarter ending July 28, 2024, up 15% from the prior quarter and up 122% from a year ago.
For the quarter, GAAP earnings per diluted share were $0.67, up 12% from the prior quarter and 168% from a year earlier. Non-GAAP earnings per diluted share were $0.68, up 11% from the previous quarter and 152% from a year earlier.
“Demand for Hopper remains strong, and the anticipation for Blackwell is incredible,” said Jensen Huang, NVIDIA Founder and CEO. “NVIDIA achieved record revenue as global data centers are in full swing to modernize the entire computing stack with accelerated computing and generative AI.”
“Blackwell samples are being sent to our partners and customers. Spectrum-X Ethernet for AI and NVIDIA AI enterprise software are two new product categories that are achieving significant scale, demonstrating that NVIDIA is a full-stack and data center-scale platform. Across the entire stack and ecosystem, we are helping everyone from frontier model makers to consumer internet services and now enterprises. Generative AI will revolutionize every industry.”
During the first half of fiscal year 2025, NVIDIA returned $15.4 billion to shareholders in the form of repurchased shares and cash dividends. As of the end of the second quarter, the company had $7.5 billion remaining under share repurchase authorization. On August 26, 2024, the Board of Directors approved an additional $50.0 billion in share repurchase authorization, without expiration.
NVIDIA will pay its next quarterly cash dividend of $0.01 per share on October 3, 2024 to all shareholders of record on September 12, 2024.
On June 7, 2024, NVIDIA completed a ten-for-one forward stock split. All share and per-share amounts presented have been retroactively adjusted to reflect the stock split.
Earnings prediction & report
Artificial intelligence chip leader Nvidia (NVDA) late Wednesday beat Wall Street’s fiscal second-quarter targets and guided higher than expectations for the current period. But Nvidia stock fell in extended trading.
The Santa Clara, California-based company earned 68 cents an adjusted share on sales of $30.04 billion in the quarter ended July 28. Analysts polled by FactSet had expected earnings of 65 cents a share on sales of $28.74 billion. On a year-over-year basis, Nvidia’s earnings increased 152% while sales increased 122%.
Nvidia’s fiscal Q2 report marked its fifth consecutive quarter of triple-digit percentage gains on a year-over-year basis.
For the current quarter, Nvidia projected revenue of $32.5 billion, beating expectations of $31.71 billion. In the same quarter last year, Nvidia had recorded sales of $18.12 billion.
In after-hours trading on the stock market today, Nvidia stock fell more than 5% to 118.24. Year to date as of Wednesday’s close, Nvidia stock is up 154%.
According to IBD MarketSurge charts, Nvidia stock has been consolidating at a buy point of 140.76 for the past 10 weeks.
Nvidia is the main arms dealer in the generic AI market, selling chips and entire computer systems for AI data centers.
Check back here for more live coverage of the company’s highly anticipated earnings report.
Additionally, demand for Nvidia’s AI systems extends beyond hyperscale cloud service providers. Notably, Nvidia is now working with most Fortune 500 companies on AI initiatives, Kress said.
“The enterprise AI wave has begun,” he said. He said companies using Nvidia AI technology include Accenture (ACN), Amdocs (DOX), SAP (SAP), ServiceNow (NOW) and Snowflake (SNOW).
On the call, Chief Executive Jensen Huang said Nvidia has not made any functional changes to its Blackwell processors during the test production phase. He reiterated that the company in the fourth quarter
NVIDIA Corporation
Stocks pulled back Wednesday, pressured by a decline in Nvidia, as investors braced for the chipmaker’s latest earnings report.
The Nasdaq Composite fell 1.12% to close at 17,556.03, while the S&P 500 slipped 0.6% to end at 5,592.18. The Dow Jones Industrial Average lost 159.08 points, or 0.39%, settling at 41,091.42.
Wall Street is keeping an eye on Nvidia to gauge the sustainability of the broader tech and artificial intelligence trade.
The semiconductor giant — slated to report after the close — has surged more than 150% in 2024, raising questions of how much more room there is for the stock to run. On Wednesday, Nvidia fell 2.1%, contributing to the information technology sector’s 1.3% decline.
Focal points for investors include the delivery schedule for Nvidia’s Blackwell chips and an update on the demand for AI. Art Hogan, chief market strategist at B. Riley Wealth Management, thinks Nvidia can deliver another upside surprise for investors.
“The reason one can feel confident rests with the fact that their largest customers have already reported and talked about how much they’re spending on their chips,” he told CNBC. “All of the hyperscalers spoke to massive amounts of capex spend on the amount of [graphics processing units] they need to move forward with their AI strategies.”
NVDA stock split: Earnings prediction & report,NVIDIA Corporation,$30 billion
Hogan added, “It’s a company that’s done a pretty good job of beating expectations pretty consistently, and a company that we know all of its largest customers continue to demand all the product they can get from them.”
Other technology stocks were also lower Wednesday, including “Magnificent Seven” peers Amazon and Alphabet, which each slid more than 1%. Microsoft fell 0.8%. AI darling Super Micro Computer tanked 19% after announcing it will not file its annual report for the fiscal year on time.
Trading volume remains light this week ahead of Labor Day weekend. With this in mind, earnings reports from Nvidia and other big names could create volatility, according to Piper Sandler
$30 billion
AI juggernaut Nvidia (NVDA) reported second-quarter earnings after the bell on Wednesday that beat expectations on the top and bottom line, while its forecast for the current quarter also came in ahead of expectations.
Nvidia reported adjusted earnings per share of $0.68 on revenue of $30 billion in its fiscal second quarter. Analysts expected EPS of $0.64 and revenue of $28.8 billion. This represents a 122% increase in the top line compared to a year ago; Revenue increased 168% from the same quarter last year.
The company also provided third-quarter revenue guidance of $32.5 billion plus or minus 2%. Analysts were looking for $31.9 billion.
Shares of the chip giant fell about 3.5% in after-hours trading following the results. The stock fell as much as 6% in immediate reaction to the data.
NVDA stock split: Earnings prediction & report,NVIDIA Corporation,$30 billion
The bulk of that revenue came from Nvidia’s most important data center business, which brought in $26.3 billion in the quarter, compared with Wall Street’s expectations of $25 billion in revenue. This is an increase of 154% compared to the same period last year when the segment saw investments of $10.3 billion.
In a statement, CEO Jensen Huang said the anticipation for the company’s next-generation Blackwell chip is “incredible.”
“Blackwell’s production ramp is scheduled to begin in the fourth quarter and continue through fiscal 2026. In the fourth quarter, we expect to deliver several billion dollars in Blackwell revenue,” CFO Colette Cress said in a statement.
The statement from Kress said the company “has made changes to the Blackwell GPU mask to improve production yield.”
The company expects “growth” in shipments of its existing hopper chips in the second half of the year.
Nvidia also announced an increase to its share buyback authorization by $50 billion on Wednesday. The company had $7.5 billion remaining on existing authorizations at the end of the quarter.
