The quarterly results of artificial intelligence chip maker Nvidia’ have once again exceeded Wall Street’'s expectations, driven by strong demand for high-end AI chips.
The company said on Wednesday that in the February-April period, 58.32 billion $ (€53.7 billion) or 2.39 per share $ He said he reported net income. This figure is 18.78 billion in the same period of the previous year. $ (€17.3 billion) or 76 cents per share. Except for one-time items, Nvidia earned $1.87 per share.
It comes in %It rose 85 percent from $44.01 billion (40.5 billion euros) to $81.62 billion (75.1 billion euros).
On average, analysts expected earnings of $1.75 per share and revenues of $78.91 billion (72.6 billion euros), according to a survey by FactSet. Nvidia’'s results have surpassed analyst estimates since high-end chips emerged as key components of AI systems three years ago.
CEO Jensen Huang said in a statement, “The construction of artificial intelligence factories, the largest infrastructure expansion in human history, is accelerating at an extraordinary pace.
High profits and revenue, as well as Nvidia’'s operating expenses %It rose 49 percent to $7.75 billion (€7.1 billion).
As governments and other industries become a greater source of demand for AI chips, the company wants to diversify its customer base by aiming to rely less on big data center operators.
This occurs as competition intensifies and large customers develop in-house alternatives.
For the current quarter, Nvidia forecasts revenues of approximately $91 billion (83.7 billion euros), while analysts expect $87.29 billion (80.3 billion euros).
Despite solid results and overall outlook, many investors remain cautious about a possible slowdown after three years of growth, with Nvidia’'s market capitalization rising from $400 billion (€368 billion) at the end of 2022 to $5.4 trillion (€5 trillion) as of Wednesday.
Shares of the Santa Clara, California-based company declined slightly to $222.12 in after-hours trading after closing at $223.47 in the regular session.
David Wagner, stock president and portfolio manager at Aptus Capital Advisors, “ (Nvidia) has repeatedly eliminated expectations and consensus; It provided exactly what people wanted, especially when it comes to data centers, ” said.
But the market isn't always moving as you'd expect after a strong report like this.“
The company also announced plans to return the money to shareholders, allow an $80 billion (73.6 billion euros) share buyback program, and increase its quarterly dividend from 1 cent to 25 cents per share.
