Last Update: May 25, 2023, 03:14 AM IST
Nvidia forecast current-quarter revenue of $11 billion, plus or minus 2%. Analysts polled by Refinitiv expect revenue of $7.15 billion. (Image: Nvidia logo / Reuters)
Artificial-intelligence boom has helped Nvidia become the fifth most valuable US company by market value
Nvidia Corp. revenue on Wednesday beat Wall Street estimates by more than 50% in the second quarter, as the company says it is ramping up supply to meet rising demand for its artificial-intelligence chips, which can be used for ChatGPT. And similar is done for many services.
Shares of Nvidia, the world’s most valuable listed semiconductor company, jumped 21% to a record high of $370 in extended trading. Nvidia’s boom after the bell raised its stock market value from about $150 billion to more than $900 billion, increasing the Silicon Valley company’s lead as the world’s most valuable semiconductor firm.
The artificial-intelligence boom has helped Nvidia become the fifth most valuable US company by market value.
Nvidia has pushed to meet demand for its AI chips, with Tesla Inc Chief Executive Elon Musk, who is reportedly building an artificial-intelligence startup, telling an interviewer earlier this week Stated that graphics processing units (GPUs) are “quite difficult to obtain with drugs.”
But Nvidia Chief Executive Officer Jensen Huang said in a statement Wednesday that the company is “significantly increasing our supply to meet growing demand” for its data center chips.
Analysts believe Nvidia reallocated some supply-chain capacity away from the slowing PC gaming market to its data center AI chips. Its PC gaming chips sell for $1,500, while its AI chips are more than ten times that at around $20,000.
Nvidia forecast current-quarter revenue of $11 billion, plus or minus 2%. Analysts polled by Refinitiv expect revenue of $7.15 billion.
Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv were expecting revenue of $6.52 billion. The company’s data center chip sales rose to $4.28 billion, beating analyst estimates of $3.89 billion, according to segment data from FactSet.
Gaming chip revenue beat Wall Street’s expectations at $2.24 billion versus estimates of $1.97 billion, according to FactSet data.
Net income rose to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,