Nvidia reported strong earnings that beat Wall Street expectations, with revenue continuing to surge in the current quarter. The company’s net income was $16.6 billion, or $0.67 per share, compared to $6.18 billion, or $2.48 per share, in the previous year. Nvidia’s data center business saw a 154% increase in revenue, accounting for 88% of total sales, with major clients including Microsoft, Alphabet, Meta, and Tesla. The company’s gaming business also saw growth, with revenue increasing by 16% from the previous year.
Nvidia is the primary beneficiary of the ongoing artificial intelligence boom, with its chips being used in a majority of generative AI applications. The company’s market value has expanded significantly since 2022, and it recently announced $50 billion in share buybacks. Despite the strong performance, Nvidia’s shares fell by nearly 4% in extended trading following the earnings report.
The company provided a stronger-than-expected guidance for the current quarter, expecting about $32.5 billion in revenue, surpassing analysts’ expectations. Nvidia’s success in the AI and data center markets has propelled its growth and market value, making it a key player in the technology sector.
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