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Nvidia just reported earnings and the stock is screaming higher.
Shares are up 25% in after hours trading and that means the company has added 180 billion dollars in market value in just a couple of hours. So the company is now being valued at roughly 935 billion dollars.
Looking at the latest earnings, you can see that quarterly revenue came in 19% above the previous quarter at 7.2 billion and data center revenue hit a new record of 4.3 billion.
Meanwhile the automotive segment saw growth of over 100%.
However, revenue year over year was actually down -13% and Nvidia’s gaming revenue collapsed.
So why is the stock marching higher? Two reasons.
First, despite strong revenue, operating expenses were down which helped net income to increase by 26% year over year.
More importantly, Nvidia gave a stunning guidance for the second quarter. Analysts were looking for 7.2 billion in quarterly revenue but Nvidia now thinks it can hit 11 billion next quarter which is a 64% increase. Not only that, but management is now targeting 68 to 70% gross margins, an increase of more than 3%.
This is a massive beat from Nvidia and shows how the AI boom is now really delivering for the company.
These are my personal opinions not financial advice and I have no position in the shares.
#shorts #investing #stocks #nvdastock
