NVIDIA (NVDA) shares rose sharply in extended trading on Wednesday after the company beat analysts’ revenue estimates and posted record data center sales.
Key points to remember
- Nvidia’s first-quarter revenue was $7.19 billion, up 19% from the prior quarter.
- The company’s data center posted record sales of $4.28 billion.
- Nvidia said demand for its suite of AI products has increased.
The Santa Clara, Calif.-based chip company said first-quarter revenue was 19% higher than the prior quarter. Results also showed a 13% decline from the year-ago quarter, analysts said. expect a bigger drop by 21%. Earnings per diluted share were $1.09, down 20% from a year ago. Net income of $2.04 billion was up 26% year over year.
Management said second-quarter revenue would be $11 billion, as CEO Jensen Huang said the industry was going through “two simultaneous transitions” in accelerated computing and artificial intelligence (AI).
“A trillion dollars of installed global data center infrastructure will transition from general-purpose computing to accelerated computing,” Huang said. He added that the company was increasing the supply of its data center products to meet “growing demand”.
Nvidia also announced yesterday that it is integrating its enterprise AI software into Microsoft’s Azure Machine to accelerate AI use cases for businesses.
Nvidia shares jumped more than 20% in extended trading after the earnings release and are up more than 100% year-to-date.