Nvidia continued its long run of topping Wall Street expectations in its latest quarterly earnings report published Wednesday, setting multiple earnings records amid significant year-over-year gains in sales and net income.
NVIDIA reported earnings Wednesday afternoon. (Photo by Jonathan Raa/NurPhoto via Getty Images)
NurPhoto via Getty Images
Key Takeaways
- Nvidia reported $0.67 earnings per share and a record $30 billion in sales for its second fiscal quarter ending in July, beating analyst expectations of $0.64 and $28.6 billion, according to FactSet.
- Nvidia’s $30 billion in sales marks a 122% increase from the same period last year.
- Net income totaled $16.5 billion in its latest quarter, signaling another profit record for Nvidia after reporting $6.1 billion in the same period last year and $14.8 billion last quarter.
- The tech giant’s datacenter division, the home of most of its artificial intelligence offerings, squashed analyst forecasts and raked in a record $26.3 billion in revenue, marking a 154% year-over-year increase.
- Shares of Nvidia closed up/down 2.1% at $125.61 before lowering to $121.18 in after-hours trading following the publication of its earnings report.
What To Watch For
Blackwell, Nvidia’s highly anticipated AI superchip, has reportedly experienced production delays, according to The Information, though two of Nvidia’s supply partners have indicated a version of the chip could ship out in the fourth quarter. Delays are not likely to impact Nvidia’s third fiscal quarter, though pushouts could put pressure on the company’s stock “amidst ongoing market uncertainty around rates/geopolitics,” according to Bank of America Securities.
Tangent
Nvidia’s once-core gaming unit posted a small gain in the second quarter, with $2.9 billion in sales. However, the division continues to record sales below its 2021 second quarter record of $3.06 billion as Nvidia has increasingly focused on its AI offerings.
Key Background
Nvidia designs the lion’s share of the semiconductor chips used to power AI technology, allowing it to secure tech giants like Microsoft, Amazon, Meta, Alphabet and Meta as its largest customers. Nvidia’s consistent and record profit gains have contributed to the company’s dazzling stock performance since the start of the year, when it traded at $48.17 per share. The tech company has cemented its place as the best stock of 2024 on the S&P 500 and is up more than 150% on the year and 500% over the last three years.
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