‘The race is on’ for AI: Nvidia CEO bullish as Q2 revenue tops estimates

Shares of laptop chip producer Nvidia soared almost 10% in after-hours buying and selling as surging demand for AI chips noticed the agency submit Q2 earnings that considerably beat Wall Road estimates.

In its Q2 earnings report, the corporate posted a whopping $13.5 billion in income for the quarter — an 88% improve from Q1. The income determine got here in at over $2 billion greater than the $11.2 billion that analysts had predicted for the corporate.

Moreover, Nvidia reported $2.48 earnings per share (EPS), which surpassed consensus analyst estimates of $2.08, in accordance with knowledge from Google Finance. The corporate’s Q2 EPS was up a staggering 854% year-over-year.

“A brand new computing period has begun. Firms worldwide are transitioning from general-purpose to accelerated computing and generative AI,” mentioned Jensen Huang, founder and CEO of NVIDIA in a press release.

The race is on to undertake generative AI,” Huang added.

Whereas opponents reminiscent of Intel and Micron Applied sciences have continued to focus the majority of their efforts on manufacturing chips for present providers reminiscent of knowledge facilities and cloud computing — Nvidia has honed in analysis and improvement for chips and graphics card items that energy AI programs — permitting it to capitalize significantly on the recent AI boom.

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Wanting ahead, the corporate predicted that its income would improve a further 18% to $16 billion by Q3 this yr.

Within the final 10 months, Nvidia’s share value has ballooned by greater than 300%, inflicting its market capitalization to high $1.16 trillion on the time of publication, in accordance with knowledge from Google Finance.

The fast development has seen Nvidia join an exclusive club of simply six firms — Apple, Microsoft, Saudi Aramco, Alphabet (Google) and Amazon — to high a trillion-dollar valuation.

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