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Nvidia reported quarterly results that topped Wall Street expectations, boosted by what the company described as massive demand for its high-end AI chips. The Santa Clara, California-based company posted earnings of $58.32 billion, or $2.39 per share, for the February-April period, compared with $18.78 billion, or 76 cents per share, a year earlier.
Revenue also rose sharply: Nvidia said revenue increased 85% to $81.62 billion from $44.01 billion. Analysts surveyed by FactSet had been expecting earnings of $1.75 per share and revenue of $78.91 billion for the quarter.
Nvidia’s earnings included an accounting measure excluding one-time items, which the company said produced earnings of $1.76 per share. Along with the higher profit and revenue, Nvidia said operating expenses increased by 49% to $7.75 billion.
For the current quarter, Nvidia forecast revenue of about $91 billion. FactSet’s poll of analysts expected $87.29 billion in revenue for that period, according to the report.
In a statement, CEO Jensen Huang linked the company’s demand backdrop to ongoing infrastructure buildouts for AI. “The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” Huang said.
Despite the results and guidance, the report said some investors still appeared concerned about the possibility of a slowdown after Nvidia’s multi-year surge. Nvidia’s market value has risen from $400 billion at the end of 2022 to $5.4 trillion as of Wednesday, according to the report, while the shares dipped slightly in after-hours trading.
The report said Nvidia shares closed the regular trading session at $223.47 and then dropped to $222.12 after hours. David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, said Nvidia has repeatedly “obliterates expectations and consensus,” adding that “the market doesn’t always act as you would expect after a strong report like this one.”
Nvidia also announced capital-return plans to shareholders. The company authorized a plan to buy back $80 billion worth of stock and increased its quarterly cash dividend to 25 cents per share from 1 cent.