The company expects second-quarter revenues to reach $28 billion, plus or minus two percent. Analysts expected average revenues of $26.66 billion, according to data from the London Stock Exchange Group.
Nvidia shares rose 6 percent to $1,007 in after-hours trading, peaking above the psychologically important $1,000 level, and adding about $140 billion to the company’s market value to $2.336 trillion. Since the beginning of the year, the company’s shares have recorded gains of more than 90 percent.
The Santa Clara, California-based company announced that it will split its stock ten-for-one, effective June 7. It also said it would raise its quarterly dividend by 150 percent to one cent per share, on a post-split basis.
Following Nvidia’s results, shares of competing AI-related chipmakers Advanced Micro Devices (AMD) and Broadcom (Broadcom) rose by about 2 percent each.
Alphabet (owner of Google), Microsoft, Amazon and other technology companies are competing for limited supplies of advanced Nvidia chips as part of their race to dominate artificial intelligence computing.
The company announced its business results after the Wall Street close, with first-quarter revenues rising by 262 percent year-on-year to $26.04 billion, exceeding estimates of $24.65 billion. Net income also increased by 628 percent to $14.88 billion.
NVIDIA occupies a unique position as it controls more than 80 percent of the artificial intelligence chipset market, making it the largest driver of development in this field in addition to being the largest beneficiary of it.
Sales in the data center sector, the largest by revenue, grew 427 percent to $22.6 billion in the first quarter ended April 28, beating estimates of $21.320 billion, according to data from FactSet.
Nvidia expects adjusted gross profit margin in the second quarter to be 75.5 percent, plus or minus 0.5 percent. Analysts on average expect gross profit margin to reach 75.8 percent.
The company achieved an adjusted gross profit margin for the first quarter of 78.9 percent, compared to estimates of 77 percent. As for its ambitious competitor, AMD, it recorded an adjusted gross profit margin of 52 percent in the first quarter of its fiscal year.
Excluding certain items, the company generated earnings of $6.12 per share in the first quarter, beating estimates of $5.59.
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