- NVIDIA’s first quarter results, released after the bell on Wednesday, showed adjusted earnings per share (EPS) tallied $6.12 on revenue of $26 billion, a jump of 461% and 262%, respectively, from a year ago.
- NVIDIA has emerged as the powerhouse chip-maker in the artificial intelligence (AI) industry. The company specialises in graphic processing units (GPUs) crucial for running complex AI models, contributing to its significant stock growth of over 242% this year.
- NVIDIA has unveiled a ten-for-one stock split, which is set to be effective on June 7th. This decision aims to make the stock more accessible to a broader range of investors.
Shares of NVIDIA surged over 9% on Thursday, building on a stunning rally as its bumper revenue forecast reinforced investor confidence in the AI-driven boom in chip demand.
Earning pops
NVIDIA’s first quarter results, released after the bell on Wednesday, showed adjusted earnings per share (EPS) tallied 6.12 on revenue of $26 billion, a jump of 461% and 262%, respectively, from a year ago.
NVIDIA has also unveiled a ten-for-one stock split, an increased dividend, following some of its Big Tech peers in doling out heftier quarterly payments to shareholders, which is set to be effective on June 7th. This decision aims to make the stock more accessible to a broader range of investors.
The semiconductor bellwether’s surge translated to an addition of around $218 billion in market value on the day, according to LSEG data, the second-largest single-day market cap gain in history on Wall Street.
The big stock move came even as expectations were high for NVIDIA with its shares trading near record peaks in the run-up to earnings. The results also capped a strong quarter for U.S. technology giants, including Microsoft, with AI emerging as a major growth driver.
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Also read: Nvidia adds record $277 billion in stock market value
AI Chip–maker Dominance
NVIDIA has emerged as the powerhouse chip-maker in the artificial intelligence (AI) industry. The company specialises in graphic processing units (GPUs) crucial for running complex AI models, contributing to its significant stock growth of over 242% this year. The stock has skyrocketed by 2,800% since the same week in 2019, when prices were below $40.
NVIDIA’s first quarter earnings results proved the growing appetite for data centres in the artificial intelligence era is not close to slowing down. CEO Jensen Huang believes artificial intelligence will continue to be a “giant market opportunity” for the company. However, industry experts caution that harnessing the power necessary to fuel this AI-driven revolution is the next challenge.
