Add The New York Post on Google Artificial intelligence chipmaker Nvidia’s quarterly results surpassed Wall Street’s expectations once again, fueled by massive demand for its high-end AI chips.
The company said Wednesday it earned $58.32 billion, or $2.39 per share, in the February-April period, up from $18.78 billion, or 76 cents per share, in the same period a year earlier. Excluding one-time items, Nvidia earned $1.76 per share.
Revenue jumped 85% to $81.62 billion from $44.01 billion.
Analysts, on average, were expecting earnings of $1.75 per share and revenue of $78.91 billion, according to a poll by FactSet. Nvidia’s results have exceeded the analyst projections that shape investors’ perceptions since Nvidia’s high-end chips emerged as AI’s best building blocks three years ago.
“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” said CEO Jensen Huang in a statement.
Along with higher profit and revenue, however, Nvidia’s operating expenses increased by 49% to $7.75 billion.
For the current quarter, Nvidia forecast revenue of about $91 billion. Analysts are forecasting $87.29 billion.
Despite the solid results and outlook, many investors still evidently are worried about a comedown after a three-year boom that has seen Nvidia’s market value soar from $400 billion at the end of 2022 to $5.4 trillion as of Wednesday.
Shares of the Santa Clara, California-based company dipped slightly after-hours to $222.12 after closing at $223.47 in the regular trading session. As of Wednesday’s close, Nvidia had a market value of $5.4 trillion.
“Time and time again, (Nvidia) obliterates expectations and consensus; it delivered exactly on what people wanted, especially regarding data centers,” said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors. “But the market doesn’t always act as you would expect after a strong report like this one.”
The company also announced plans to return some money to shareholders. It 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.
