Nvidia Earnings: Stock Surges in After-Hours Trading Today ...
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Nvidia reported results late Wednesday, sending shares up in after-hours trading.
In its closely watched report, Nvidia said revenue was $22.1 billion for the latest quarter, above analysts' expectations for $20.4 billion.
The company's outlook for the current quarter was strong, as well, above Wall Street forecasts.
Nvidia shares rose 6% initially following the release.
As a proxy for artificial intelligence demand, any large moves in shares of Nvidia tend to affect the entire tech sector and the broader market.
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Investors fretted about the potential for an earnings-related selloff in Nvidia shares headed into the quarter. They're now breathing a sigh of relief.
Nvidia shares have jumped 7.7% in late trading Wednesday on the graphics chip company's strong quarter and impressive guidance. Shares of other plays on artificial intelligence were also rising, setting the stage for a tech rally on Thursday.
In after-hours trading, Advanced Micro Devices was up 2.5%, Intel 0.7% higher, Qualcomm up 1.2%, and memory chip giant Micron up 1.5%.
Broadcom, which among other things make chips used in AI data center networking applications, is up 2.5%. Arista Networks, a networking equipment company widely seen as a play on the AI trend, is up 2.2%. Taiwan Semiconductor, which makes chips for Nvidia, is up 3% in late trading.
The data center service company Super Micro Computer is up 5.2% in late trading, erasing most of a 6.8% decline in Wednesday's regular session.
The Nvidia results are also bolstering shares of the large cloud computing companies, with Amazon up 0.6%, Microsoft 0.3% higher, and Alphabet up 1%. Meta Platforms is up 1.2%.
AI application plays are gaining ground as well, with Palantir up 4.3% after hours and C3.ai up 4.5%.
Synopsys, the chip design software company, also posted results Wednesday afternoon. It specifically called out AI as a driver for its strong January quarter results. Synopsys is up 3% after hours, while shares of rival Cadence Design Systems have rallied 4%.
Demand for future Nvidia products is robust.
On a call with investors and analysts, Nvidia Chief Financial Officer Colette Kress said supply for current artificial intelligence graphics processing units is improving and demand is strong.
The executive also said the company expects "our next-generation products to be supply constrained as demand far exceeds supply."
Nvidia’s major next-generation AI chip, the B100, is expected to be released in the coming quarters, according to prior company presentations.
Nvidia shares rose as much as 10% in after-hours trading.
Nvidia CEO Jensen Huang (Michael M. Santiago/Getty Images)
Start-ups and corporations are clamoring for Nvidia’s AI data center chips.
On Wednesday, the chip maker reported January quarter data center revenue of $18.4 billion, up 409% year-over-year. In the year-ago quarter, revenue for that segment was just $3.6 billion.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” Nvidia CEO Jensen Huang said in company's press release.
Nvidia said the rise in data center results reflected higher shipments of Nvidia Hopper GPUs used for the training and inference of large language AI models and generative AI applications. Large cloud computing providers accounted for more than half of the data center revenue for the quarter.
Nvidia shares are up 7% following the release.
