Nvidia Corp. (NASDAQ:NVDA) strong positioning in artificial intelligence technology is taking the chipmaker into the stratosphere Wednesday.
Santa Clara, California-based Nvidia’s second-quarter non-GAAP earnings per share rose 422% year-over-year from 51 cents to $2.70. Sequentially, the measure improved 148% from the previous quarter’s $1.09 per share.
Analysts, on average, expected the bottom-line result to come in at $1.91.
The earnings growth reflected strong revenue, which climbed 101% year-over-year and 88% sequentially to $13.51 billion. The topline came ahead of the consensus estimate of $10.3 billion and the company’s guidance of $11 billion plus or minus 2%.
The non-GAAP gross margin was 71.2%, higher than the year-ago’s 45.9% and the previous quarter’s 66.8%.
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Ahead of the results, KeyBanc Capital Markets analyst John Vinh said he expects second-quarter revenue and earnings per share of $12.7 billion and $2.49 per share, respectively.
“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI,” said Nvidia CEO Jensen Huang
Nvidia’s Q3 Outlook: For the third quarter, Nvidia expects revenue of $16 billion plus or minus 2% vs. the consensus estimate of $11.57 billion. The company guided to a non-GAAP gross margin of 72.5% plus or minus 50 basis points.
Nvidia Stock Performance: Nvidia stock has been the best-performing S&P 500 stock this year, gaining 219% so far.
After settling Wednesday’s regular session 3.17% higher at $503.37, the stock is rallying by 6.84% in after-hours trading, according to Benzinga Pro data.
Read Next: Jim Cramer Dives Deep Into Nvidia’s ‘Really Incredible’ Monday Surge: What Stock’s Short Interest Looks Like Ahead Of Q2 Print
Photo courtesy of Nvidia.
