Nvidia corp results:
Nvidia Corp. has reported exceptional earnings, with profits and revenue skyrocketing thanks to the company’s leading position in chips for artificial intelligence applications, driving unprecedented demand. According to an Associated Press report, the results highlight company’s prominence in the AI boom.
The company saw profits increase by 628% and revenues by 268% compared to the same period in 2023. company’s net income surged to $14.88 billion in the first quarter ending April 28, up more than sevenfold from $2.04 billion a year earlier. Revenue tripled to $26.04 billion from $7.19 billion in the previous year’s quarter.
The AI giant surpassed all expectations during its quarterly results announced early on May 23 (Indian time). company shares crossed the $1,000 mark for the first time in extended trading. The company also announced a 10-for-1 stock split and a quarterly dividend increase to 10 cents, a 150% rise.
Adjusted earnings per share of $6.12 exceeded Wall Street’s expectations of $5.60. Nvidia shares rose over 7% in after-hours trading to $1006.89. Now, company holds the third-highest market value on Wall Street, behind only Microsoft and Apple.
CEO Jensen Huang stated that a new “industrial revolution” has begun, with AI poised to significantly boost productivity across nearly every industry and create new revenue opportunities. Huang predicted that companies would use Nvidia chips to build “AI factories” producing artificial intelligence. He noted that AI models are becoming “multimodal,” capable of understanding and processing text, speech, images, video, and 3-D data, and are learning to “reason and plan.”
Analysts praised Nvidia’s performance, with Jacob Bourne of Emarketer remarking, “Nvidia defies gravity again.” While tech giants are working to reduce their reliance on Nvidia’s AI hardware, they haven’t achieved this yet, Bourne noted.
