Nvidia Corp. reported blockbuster earnings on Wednesday, with its profit and revenue soaring as the company’s dominance in chips for artificial intelligence applications fueled extraordinary demand. The results showcased Nvidia’s position at the forefront of the AI boom, as per an Associated Press report.
The AI giant surged past all of them during its quarterly results, which were announced in the early hours of May 23, Indian time. Shares surpassed the $1,000 mark for the first time in extended trading. A 10-for-1 stock split, meaning the division of one share into ten, has also been announced. NVIDIA will additionally pay a quarterly dividend of 10 cents, representing a 150 per cent increase.
Nvidia experienced a remarkable increase in profits and revenues, rising by 628% and 268% respectively, compared to the corresponding period in 2023.
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Here are the top 10 highlights from Nvidia’s results
Net income surged to $14.88 billion in the first quarter ended April 28, up more than sevenfold from $2.04 billion a year earlier.
Revenue tripled to $26.04 billion from $7.19 billion in the previous year’s quarter.
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Adjusted earnings per share of $6.12 exceeded Wall Street’s expectations of $5.60.
Nvidia announced a 10-for-1 stock split.
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The company increased its dividend to 10 cents per share from 4 cents.
Shares rose over 7% in after-hours trading to $1006.89.
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Nvidia now boasts the third-highest market value on Wall Street, behind only Microsoft and Apple.
“The next industrial revolution has begun,” CEO Jensen Huang declared.
Huang predicted companies will use Nvidia chips to build “AI factories” producing “artificial intelligence.”
He said AI models are becoming “multimodal” and able to “reason and plan.”
“Training AI models is becoming a faster process as they learn to become ‘multimodal’ — that is, capable of understanding text, speech, images, video and 3-D data — and also ‘learn to reason and plan,'” Huang added, as quoted by AP.
Analysts praised Nvidia’s performance, with Jacob Bourne of Emarketer remarking, “Nvidia defies gravity again.” While tech giants aim to reduce dependence on Nvidia’s AI hardware, “they’re not quite there yet,” Bourne said, as quoted by AP.
(With Inputs from AP)
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Published: 23 May 2024, 06:29 AM IST