Nvidia (NVDA) shares rose sharply during Trade extended 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 Nvidia Data Center the company 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. The results also showed a 13% drop from the year-ago quarter, with analysts expecting a larger drop of 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 that revenue from the second quarter 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 move from general purpose computing to accelerated computing,” Huang said. offers its data center products to meet “increasing demand”.
Nvidia also announced yesterday that it is integrating its enterprise AI software into Microsoft's Azure Machine to accelerate the use cases of the #39;AI for business.
Nvidia shares jumped more than 20% in extended trading after the earnings release, and are up more than 100% year-to-date.