Nvidia, the leading developer of artificial intelligence chips, reported strong earnings for its fiscal second quarter, surpassing Wall Street expectations and providing a positive outlook for the upcoming period. However, the company’s stock saw a decline in after-hours trading.
For the quarter ending July 28, Nvidia posted adjusted earnings of 68 cents per share on revenues of $30.04 billion, exceeding analyst predictions of 65 cents per share on sales of $28.74 billion. Compared to the same quarter last year, Nvidia’s earnings soared by 152%, while sales increased by 122%. This marked the company’s fifth consecutive quarter of triple-digit year-over-year growth.
Looking ahead, Nvidia has forecast revenue of $32.5 billion for the current quarter, which is above the anticipated $31.71 billion, significantly higher than the $18.12 billion reported in the same quarter last year.
Despite these strong results, Nvidia’s stock fell over 5% in extended trading, reaching 118.24. Year-to-date, the stock has gained 154%. The stock has been consolidating for the last 10 weeks at a buy point of 140.76.
Nvidia remains a key player in the generative AI market, supplying both chips and entire systems for AI data centers. CEO Jensen Huang emphasized the company’s pivotal role in modernizing data centers for accelerated computing, stating that Nvidia is just beginning this transformative journey.
During the earnings call, Nvidia’s CFO Colette Kress noted that while the company’s chip supply from manufacturers improved, demand continues to exceed supply. She highlighted that Nvidia is collaborating with many Fortune 500 companies on AI projects, signaling the start of an enterprise AI wave.
Despite this optimistic outlook, analysts expressed concerns about the company’s stock decline, suggesting that investors expected a more substantial growth outlook from Nvidia compared to previous quarters.
Nvidia also announced a new $50 billion share buyback program, extending its existing repurchase authorization. In the latest quarter, Nvidia achieved a record $26.3 billion in data center revenue, marking a 16% quarterly increase and a 154% rise year-over-year.
As Nvidia prepares to ship its new Blackwell processors, the company remains solid in its product development timeline, with expectations to begin significant shipments in the upcoming quarter.