ALBAWABA - Nvidia's stock surged during post-Wednesday trading following the announcement of better-than-expected quarterly results by the American electronic chip manufacturer.
Earnings per share for Nvidia reached $2.70, compared to an estimated $2.09 per share. The company generated revenues of $13.51 billion, surpassing expectations of $11.22 billion.
In a statement, Nvidia projected revenues of around $16 billion for the third quarter, exceeding analysts' expectations of $12.61 billion. The company stated that its sales would jump by 170% year-on-year in the current quarter.
Net income for the company rose to $6.19 billion, or approximately $2.48 per share, in the second quarter, up from $656 million, or 26 cents per share, during the same period in 2022.
Nvidia. (Shutterstock)
These strong results reflect a resurgence in demand for Nvidia's core technologies, such as the AI chips A100 and H100AI, which are essential for services like ChatGPT and other AI-related applications.
The company's revenues for the second quarter increased by 88% to $6.7 billion compared to the same period in 2022.
The gaming division's revenues rose by 22% to $2.49 billion, surpassing expectations of $2.38 billion.
Nvidia also mentioned that its board of directors approved a $25 billion share buyback program, following a $3.28 billion share repurchase in the second quarter.
