Nvidia reported better-than-expected fiscal second-quarter results and issued revenue guidance that topped estimates. The stock slipped in extended trading on Wednesday.
Here’s how the company did versus analysts’ expectations, according to LSEG.
Earnings per share: $2.22 adjusted vs. $2.10 estimatedRevenue: $96.22 billion vs. $92.17 billion estimated
Nvidia sits at the center of the artificial intelligence world and has grown fiercely on the back of the AI boom.
The company’s chips have been used to build and serve the most advanced AI models, and increasingly Nvidia is providing financial support through backstops and other arrangements that allow new AI data centers to get funded and built.
Almost four years since the launch of OpenAI’s ChatGPT, Nvidia is still seeing massive growth, with revenue more than doubling in the latest quarter from $46.7 billion a year earlier.
Net income in the quarter more than doubled to $53.95 billion, or $2.22 per share, from $24.76 billion, or $1.87 per share in the year-ago period.
But following a historic three-year rally, investors have somewhat cooled on the stock this year, sending it up just 13% as of Wednesday’s close, slightly outperforming the Nasdaq. While the business continues to hum along, competition is on the horizon from Advanced Micro Devices, Google and others. And the company faces soaring memory costs as a worldwide shortage shows no signs of abating.
The company’s conference call with investors begins at 5 p.m. ET. and tune in at 6 p.m. ET for “Mad Money” as Nvidia CEO Jensen Huang joins CNBC’s Jim Cramer to talk about earnings results. Watch in real time on CNBC+ or the CNBC Pro stream.
CNBC’s reporters are covering Nvidia earnings from bureaus in San Francisco and Englewood Cliffs, New Jersey.