Nvidia hit record high after strong earnings
2023-08-24
Summary:
Nvidia's Q2 earnings exceeded expectations, driving a 6% after-hours stock rise. The chipmaker plays a central role in the AI computing industry.
Nvidia shares climbed 6% in extended trading on Wednesday as its second quarter earnings blew away expectations for the chipmaker that is at the heart of an industrywide race toward AI computing.
The company reported revenue of $13.5 billion, more than double what it raked in the previous year. Net income jumped to $6.19 billion from $656 million a year earlier.
It marks a milestone as its quarterly sales beat those of Intel for the first time. Nvidia said it expects fiscal third-quarter revenue of about $16 billion, higher than $12.61 billion forecast by Refinitiv.
Marco Argenti, Goldman Sachs’s chief information officer, calls AI ‘probably one of the biggest revolutions or changes that I have ever seen. We believe that AI could be a profound disrupter not only of our industry, but all digital and all information and knowledge industries in general.’
The NASDAQ ended 1.6% higher ahead of the report. Futures tied to the US major indexes are soaring, suggesting Wall Street is likely to open with gains on Thursday.
According to strategists in a Reuters poll, the S&P 500 will eke out only marginal gains between now and year end, after its strong move up already this year.
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