Nvidia Jumps Higher After Q2 Earnings Report

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Nvidia Jumps Higher After Q2 Earnings Report

Nvidia (NVDA) Jumps 10% After Q2 Earnings Report

Nvidia (NVDA) jumped 10% higher on the stock market after its Q2 results beat the estimates by a big margin. The semiconductor designer company reported $2.70 EPS, which is 29% above Wall Street expectations.

Similarly, the revenue for Nvidia was $13.51 billion, which is a jump of 22% from the consensus of the Wall Street experts.

Overall, the revenue during Q2 increased by 88% when compared with Q1 2023. And if we look at the revenue figures from a year ago, that's an increase of almost 101%.

A100 And H100 Chips In High Demand

Experts believe that there's big demand for the A100, H100, and other chips produced by Nvidia. One particular area that is fueling the demand for the Nvidia chips is the generative AI (For example, ChatGPT).

During Q2, several cloud providers also announced their plans to build AI-focused infrastructures using the NVIDIA H100. Similarly, many software providers, as well as IT systems, are also collaborating to bring the AI-powered Nvidia infrastructure to all industries.

That's why it wouldn't be wrong to say that the race to adopt the generative AI technology is fueling the demand for Nvidia chips.

The recent Q2 results reveal that revenue from data centers was 10.32 billion, with an increase of 171% year-over-year. Similarly, the revenue from gaming was $2.49 billion, with a jump of 22% year-over-year.

After the results, the Nvidia stock gained a 3.17% upside and closed near $471.15 during the regular trading hours. So, if we look at Nvidia's current closing price, it is already up by 229% year to date (2023).

For Q3 2023, the Nvidia management is looking to close $16 billion worth of sales which is above the forecast of around $12.4 billion. In addition, the gross margins of the GAAP are forecasted at 71.5%, while non-GAAP is expected to be 72.5%.

After the announcement of the Q2 results, NVIDIA turned to the market to repurchase around 7.5 million shares of the company. This move will decrease the number of public shares and thus will further increase the share's public price.

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