Nvidia Beats Q2 2024 Estimates As Firm Rallies On AI Boom
NVIDIA (Nasdaq: NVDA) exceeded market predictions on its Q2 2024 earnings report released on Wednesday after market close. The tech giant’s thriving stock remains scorching hot, primarily fueled by its robust artificial intelligence division.
The chipmaker recorded $13.5 billion in sales, up from last quarter’s $7.2 billion and last year’s $6.7 billion, while earnings per share (EPS) came in at $2.48 for the quarter, up from last quarter’s $0.82 and last year’s $0.26. These figures significantly exceeded the consensus analyst estimates of $11.2 billion in sales and $2.08 EPS, as reported by FactSet.
The top figure also exceeded the company’s own prediction of $11 billion in revenue for the second quarter, announced in the last quarter.
A standout contributor to this remarkable success is Nvidia’s datacenter unit, which encompasses its pivotal AI operations. This unit achieved an astonishing $10.32 billion in revenue, marking an extraordinary year-over-year increase of 171%. This exceptional achievement far surpassed the initial projections of analysts, who had anticipated revenue to reach $8.03 billion.
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia.
The firm has set another ambitious target for the upcoming quarter, projecting sales to reach $16 billion. This projection once again outpaces the forecasts of analysts, who had predicted sales to hit $12.6 billion.
In response to this impressive performance, Nvidia’s shares experienced a 7% surge in after-hours trading, propelling them beyond the $500 mark. This surge positions the stock to surpass its own all-time intraday high of $482, which was achieved just the day before.
With its commanding position as the leading producer of chip technology for generative AI, Nvidia’s valuation has witnessed a substantial surge in the past year, driven by investor enthusiasm for AI technologies. The company’s stock price has soared by over 300%, leading to a staggering increase in market capitalization from under $300 billion to nearly $1.2 trillion within the span of 10 months. This meteoric rise makes Nvidia the standout performer on the S&P 500 index, one of only six companies globally valued at over $1 trillion. Notable peers in this exclusive club include Apple, Microsoft, Saudi Aramco, Alphabet, and Amazon.
Previous earnings reports have also triggered significant stock price movements, with Nvidia shares surging by 14% and 24% on the first trading days following the release of its February and May reports, respectively.
Information for this briefing was found via Forbes, Edgar, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
