Nvidia saw its revenue and profit rise sharply in the second quarter, also exceeding expectations, according to figures that investors worldwide were eagerly awaiting on Wednesday evening.
“Nvidia achieved record revenue as data centers around the world raced to modernize their entire computing stack with faster computing and generative AI,” CEO Jensen Huang said in a statement. “Generative AI will revolutionize every industry.”
Last quarter, Nvidia posted revenue of $30.0 billion, up 122 percent from the same period last year. This was the fifth consecutive quarter of triple-digit revenue growth.
In the first quarter of this year, revenue was $26 billion, and analysts expected $28.7 billion for the second quarter. Nvidia itself had issued a revenue outlook of $28 billion, plus or minus 2 percent.
Adjusted gross margin was 75.7 percent. That was 71.2 percent a year earlier and 78.9 percent a quarter earlier. Nvidia’s outlook was for a margin of 75.5 percent, but with a possible deviation of 0.5 percentage points up or down.
Net profit rose 168 percent year-on-year to $16.6 billion.
Adjusted earnings per share were $0.68. Analysts polled by FactSet had expected $0.65 per share. In the first quarter, Nvidia earned $6.12 per share, but then the stock was split, with shareholders receiving 10 new shares for every old share.
Nvidia announced Wednesday night that it will buy back an additional $50.0 billion of its own shares. It will also pay a quarterly dividend of $0.01 per share. This will happen in early October.
Segments
Data center revenue rose 154 percent from a year ago to $26.3 billion in the second quarter, helped by strong demand for Nvidia graphics processors used in AI applications.
The company’s gaming business, which includes graphics cards for laptops and PCs, saw revenue rise 16 percent year-on-year in the second quarter to $2.9 billion.
Outlook
For the third quarter, Nvidia expects revenue of $32.5 billion, plus or minus 2 percent, and an adjusted gross margin of 75.0 percent, up to 50 basis points.
This means that Nvidia’s revenue forecast is higher than the market.
For the entire financial year, Nvidia still expects a margin of around 75 percent.
Furthermore, Nvidia CEO Huang said of the new generation of Blackwell processors that expectations for it are “unimaginable,” while demand for the Hopper remains strong.
In regular trading, Nvidia stock closed down just over 2 percent. After-hours trading, the stock fell about 2.5 percent.
Update: to add more information.
