AI chipmaker NVIDIA climbs to another record on earnings
Shares rose 5.5% in extended trading hitting yet another record, after posting better than expected results and forecasts.
Excluding items, the company earned $6.12 per share in the first quarter, beating estimates of $5.58 while revenue rose 262% year-over-year to $26bln, beating estimates of $24.6bln. Sales at the data centre segment, its largest by revenue, grew 427% to $22.6bln. Nvidia now sees Q2 revenue of $28Bln, plus or minus 2%, above analysts' expectations of $26.66Bln, according to LSEG data.
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NVIDIA share price
Video shares rose more than 5% as of extended trade late last night after the company produced a wonderful set of first quarter earnings. Better than expected results and also forecasts as well. Excluding items, the company earning $6.12 per share in the first quarter, beating estimates of 5.58 revenue up a whopping 262% year over year to 26 billion. Beating estimates of 24.6 billion on the figures that were expected for this quarter.
NVIDIA
Sales at the data center segment, its largest by revenue growing 127% year over year to 22.6 billion. Margins were metric investors were particularly attentive to. NVIDIA reporting first quarter adjusted gross margins of 78.9 beating estimates of 77%. To compare this competitor, AMD had recorded an adjusted margin of 52% in its fiscal first quarter. NVIDIA expects second quarter adjusted gross margins to be 75.5% plus or -50 basis points.
AMD
And the company says it will split its stock ten for one effective on the 7th of June. It's also raising its quarterly dividend by 150% to $0.01 per share the post-split basis. Take a look at the share price chart up at a record high of 106% so far this year at over 106.87. And that 10.1 stock split will make the stock far more appealing to the smaller investors in video shares up 5.9% in extended trade and following these results, we did see AMD at a bit of weight as well.
This is one of the companies that's really snapping at the heels of NVIDIA, that stock was up 2.4% in extended trading late last night on the energy platform.
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