Artificial intelligence drives strong move in Nvidia stock after better-than-expected earnings by Investing.com

© Reuters.

Investing.com – Released a second quarter that beat expectations and promised higher earnings and success next quarter than Wall Street’s forecasts.

Nvidia Earnings - InvestingPro

NVIDIA, the technology company, reported second-quarter results that beat expectations and provided optimistic guidance, driven by increased adoption of AI architecture and rising demand for its chipsets.

NVDA shares rose more than 9% in after-hours trading following the announcement. The company reported adjusted earnings per share of 2.70 on total revenue of $13.51 billion for the quarter. That beat analysts’ expectations, as it reported revenue of $2.07 million on total revenue, according to Investing.com.

NVIDIA’s business recorded a significant increase of 171%, reaching $10.32 billion in the second quarter over the previous year. This growth is due to companies shifting towards accelerated computing and structural AI rather than general purpose computing.

Demand for NVIDIA’s AI-related products, such as chips for training AI models and cloud services, has made it a top choice for startups and companies looking to expand into the AI ​​field.

The company’s revenue from its games business rose 22% to $2.49 billion in the quarter.

For the fiscal third quarter, the company issued a forecast of $16 billion in total revenue, with a possible margin of plus or minus 2%. According to Investing.com, it is looking at projections of $12 billion. Total margins are expected to be between 71.5% and 72.5%, plus or minus 50 basis points.

The chipmaker also announced plans to buy back an additional $25 billion in shares, with buybacks expected to continue throughout the year.

See also  Philippine Airlines files for bankruptcy in the United States

Nvidia’s guidance is expected to strongly boost the tech stock market, especially as it is expected to pick up momentum in the artificial intelligence sector. Positive forecasts indicate that corporate AI spending could receive a significant boost, benefiting various AI-related companies, including Microsoft MSFT, Google (NASDAQ:) GOOGL, ORCL, PLTR, MonogoDB and SNOW, among others.

Analysts at Wedbush noted that they expect this spending momentum to lead to an $800 billion increase in business and consumer spending over the next decade.

It offers a free investing webinar on the best possible moves in the middle of a bear market. Is a bear market really a profit and buying opportunity or can it be traded too? The doctor answers. Muhammad Al-Khubari will answer these questions on Thursday at 7:00 pm Riyadh time.

All you need to do is register here

Free Webinar - Trading in a Bear Market

  • Nadia Barnett

    "Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

    Related Posts

    • Economy
    • November 2, 2024
    • 72 views
    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    The wealth management landscape is undergoing a dramatic transformation, fueled by the rise of financial technology (fintech), according to fintech entrepreneur Emils Kerimovs. No longer exclusive to the ultra-wealthy, innovative…

    UAE Powering Gaming Boom in the Middle East

    The gaming industry in the Middle East is experiencing a growth spurt, with Saudi Arabia and the United Arab Emirates (UAE) among the countries attracting major investments. However, this digital…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    How to Choose the Right Mattress: Find the Best Fit for You

    How to Choose the Right Mattress: Find the Best Fit for You

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Best Kitchen Renovation Ideas to Upgrade Your Space