Nvidia delivers another blockbuster quarter and guidance: ‘most important company to civilization’

Shares of Nvidia Corp (NASDAQ: NVDA) jumped nearly 10% in extended hours after the semiconductor behemoth reported its financial results for the second quarter that blew past Street estimates.

Nvidia’s outlook left consensus miles behind

More importantly, the chipmaker issued revenue guidance for its current quarter that topped consensus by some $3.5 billion.

Nvidia now forecasts its revenue to print at $16 billion in the third quarter – up a whopping 170% on a year-over-year basis. On Yahoo Finance Live, Angelo Zino – a Senior Analyst of CFRA Research said today:

Their addressable market is growing exponentially not only in 2023, but over the next couple of years, we think that trend will continue as a bigger percentage of the server market becomes AI-driven.

Nvidia stock is now up more than 250% year-to-date.

AI tailwinds continue to help Nvidia

Nvidia attributed the strength in its recently concluded quarter to a 171% annualised growth in data centre revenue to $10.32 billion.

That segment includes the H100 and A100 chips that are pivotal for artificial intelligence. According to CFRA’s Zino:

Nvidia is going to be the most important company to civilization because every enterprise company directly or indirectly will be exposed to Nvidia and rely on it to an extent over the next five to ten years.

Its gaming and automotive revenues also went up 22% and 15% on an annual basis, as per the press release. Wall Street currently has a consensus “buy” rating on Nvidia stock.

Nvidia Q2 earnings snapshot

• Earned $6.19 billion versus the year-ago $656 million
• Per-share earnings skyrocketed from 26 cents to $2.48
• Adjusted EPS printed at $2.70 as per the press release
• Revenue more than doubled year-on-year to $13.51 billion
• Consensus was $2.09 a share on $11.22 billion revenue

Note that Nvidia Corp also authorised $25 billion in stock repurchase on Wednesday. The CFRA Research analyst concluded:

We think demand continues to outstrip supply. When you think about some of the big cloud providers, this won’t be a one or two quarter thing. This will be a multi-year process. Competitive pressures are not a major risk.

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