Nvidia (NVDA) shares were sharply higher in extended trading on Wednesday after the company beat analysts’ revenue estimates and posted record data center sales.
- Nvidia’s first quarter revenue was $7.19 billion, up 19% from the previous quarter.
- The company’s data center reported record revenue of $4.28 billion.
- Nvidia said demand for its suite of AI products has soared.
The Santa Clara, Calif.-based chip company said first-quarter revenue was up 19% from the prior quarter. The results also showed a 13% decrease compared to the previous quarter, with analysts expect a bigger drop 21%. Earnings per share were $1.09, down 20% from a year ago. Net income of $2.04 billion was up 26% year over year.
Management said second-quarter revenue would come in at $11 billion as CEO Jensen Huang said the industry is going through “two simultaneous transitions” in accelerated computing and artificial intelligence (AI).
“A trillion dollars of installed global data center infrastructure will transition from universal to accelerated computing,” Huang said. He added that the company is increasing its data center product offerings to meet “growing demand.”
Nvidia also announced yesterday that it is integrating its enterprise AI software into Microsoft’s Azure Machine to accelerate AI use cases for corporations.
Shares of Nvidia rose more than 20% in extended trading after the earnings release and are up more than 100% year-to-date.