Nvidia Corporation delivered its second quarter fiscal 2025 earnings report on Wednesday after the market closed, showing revenue of $30 billion and earnings per share of $0.64. Those figures beat analyst expectations, which pegged expected revenue at $28.7 billion.
Notably, Nvidia’s revenue grew 122% year-over-year, as demand for its processors continues to surge. The company also announced a $50 billion stock buyback.
“Nvidia achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI,” said Jensen Huang, Nvidia’s founder and CEO, in a statement.
The earnings report—which was perhaps one of the most anticipated earnings releases in recent memory—serves as a signal as to whether the artificial intelligence boom over the past year and a half should continue. Strong earnings, in this case, would be a signal that demand is still high, whereas weak earnings, conversely, could be a signal that the rally is petering out.
Given Nvidia’s strong earnings, that doesn’t appear to be the case.
Before the earnings report was released, Nvidia shares were trading down between 2% and 3% most of Wednesday, at around $125 per share. Year to date, however, shares are up around 160%; and over the past five years, up nearly 3,000%. That growth is largely due to the company’s processors, which have powered much of AI’s rise in popularity.
Despite the expectations-beating earnings numbers, Nvidia shares were trending down—stock prices were down more than 5% as of 4:30 p.m. ET.
While AI is expected to continue to power the economy in years ahead, analysts have recently warned that the hype is oversold, and that lofty valuations for AI-related stocks, such as Nvidia, were unjustifiably high. With Nvidia’s market cap having exceeded $3 trillion, it now comprises around 7% of the S&P 500. So, a big enough swing in its value—up or down—could have ramifications for the market at large, too. The same goes for other tech stocks, such as Apple, Microsoft, and Amazon, which likewise comprise significant percentages of the S&P 500.
Accedi per aggiungere un commento
Altri post in questo gruppo
Every so often, Microsoft design director Diego Baca boots up an old computer so he can play around with Windows 95 again.
Baca has made a hobby of assembling old PCs with new-in-box vin
Twitter cofounder Jack Dorsey is back with a new app that tracks sun exposure and vitamin D levels.
Sun Day uses location-based data to show the current UV index, the day’s high, and add
AI chatbot therapists have made plenty of headlines in recent months—s
The latest version of Elon Musk’s artificial intelligence chatbot Grok is echoing the views of its
When an emergency happens in Collier County, Florida, the
A gleaming Belle from Beauty and the Beast glided along the exhibition floor at last year’s San Diego Comic-Con adorned in a yellow corseted gown with cascading satin folds. She could bare
