Nvidia’s stock surged by up to 9% in after-hours trading on Wednesday after the company from Santa Clara, California, posted a remarkable 101% year-over-year sales growth. This growth brought in $13.5 billion for the quarter ending in July, setting a new record for the company.
The results surpassed the expectations of Wall Street analysts who had predicted $11.2 billion in revenue. The company’s non-GAAP adjusted profits saw an astonishing increase of 429% from the previous year’s same period, amounting to $2.70 per share, which also exceeded analysts’ predictions.
For the current quarter, Nvidia has projected even higher revenue, with a forecast of $16 billion for its fiscal third quarter. Colette Kress, Nvidia’s CFO, expressed enthusiasm about the strong demand for their AI-focused data center platform across various industries and customers during the company’s earnings conference call.
Nvidia’s stock has soared by over 220% since the start of the year, driven by the growing popularity and demand for artificial intelligence technology. The company’s processors power generative AI, which underpins innovative services like ChatGPT.
Additionally, Nvidia revealed a $25 billion share buyback program, often seen as a signal that the company’s leadership believes its stock is currently undervalued.
Jensen Huang, Nvidia’s CEO, emphasized the start of a new computing era, marked by the shift from general-purpose to accelerated computing and generative AI. The company collaborates with leading IT system and software providers to integrate Nvidia AI into various industries.
Nvidia’s gaming division, once its primary focus, expanded to $2.5 billion, marking an 11% increase from the prior quarter and a 22% jump compared to the previous year.
However, not all sectors of Nvidia’s business experienced growth. The chipmaker’s professional visualization unit, responsible for high-end graphics, reported second-quarter revenue of $379 million, reflecting a 24% decline from the previous year.
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