- Nvidia beat Q1 expectations with big revenue beat.
- Nvidia raises Q2 outlook by roughly $4 billion above previous consensus.
- Nvidia shares soared to a new all-time high above $375.
- NVDA stock adds about $173 billion to the market capitalization.
Nvidia (NVDA) shares were up nearly 23% at the time of writing late Wednesday after the leading maker of GPUs, other semiconductors and life science software reported a strong first-quarter revenue increase. That’s a new all-time high for the world’s leading designer of advanced computer chips.
The graphics card maker reported fiscal first-quarter revenue of $7.2 billion, while Wall Street had expected last year’s semiconductor slump to lead to just $6.5 billion in revenue. Revenue was nearly 11% better than expected, but still down from $8.3 billion in the same quarter a year ago.
The NASDAQ lost 0.6% in Wednesday’s regular session as markets worried about insufficient movement in the debt ceiling debate, while the S&P 500 and Dow lost more than 0.7%. Much-watched Snowflake also reported lackluster results, sending its shares down more than 12%. Nvidia’s enthusiastic results then have the ability to completely rewrite the market’s narrative for the rest of the week.
Nvidia Earnings News: NVDA Adds $173B To Market Cap After Hours
Nvidia also reported a significant drop in profits in the quarter. Adjusted earnings per share of $1.09 beat analysts’ consensus by 18.5%. Operating income was up 37% from last quarter and net profit was up 25% over the same period.
The ever-animated CEO and founder of Nvidia, Jensen Huang, was at his best. His statement clearly shows why the market is eating up his every word. The market seems only interested in artificial intelligence and generative AI at the moment, and Nvidia is an approach to investing in the space it’s trying to carve out. Almost all the most wanted chips for the predicted AI revolution are in the hands of Nvidia.
“A trillion dollars of installed global data center infrastructure will shift from general purpose to accelerated computing as companies race to apply generative artificial intelligence to every product, service and business process,” Huang said on an earnings call. “Our entire family of data center products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — are in production. We are significantly increasing our offer to meet the growing demand for them.”
Speaking of data centers, this segment posted revenue of $4.3 billion in the first quarter, up 14% year-over-year. This is significant because Nvidia has seen a general deterioration in the data center business over the past year, which analysts at the time noted highly. Those rainy days seem to be gone now.
Moreover, another hard-hit segment – gaming – has taken another turn. Game revenue of $2.24 billion rose 22% in the latest quarter as distributors began to replenish their shelves.
The professional visualization segment saw a 31% quarter-over-quarter increase in revenue, while automotive revenue grew 114% year-over-year. The entire quarter was phenomenal, with Nvidia adding approximately $173 billion in market cap during after-hours trading.
Things got really wild when Nvidia hit $11 billion in revenue during the current quarter, its second fiscal quarter ending in July. Before the earnings call, Wall Street had expected $7.1 billion. Almost $4 billion appears to have entered the picture in the last 90 days.
Nvidia stock forecast
Nvidia has reached a new all-time high. After-hours shares rose 23% to $375, well above the previous all-time high of $246.47 in November 2021. The Relative Strength Index (RSI) is now heavily overbought and the stock must decline. However, this excitement is palpable. That gain alone is likely to fuel a broad market turn higher on Thursday.
NVDA weekly chart
