The company reported revenue of $16.6 billion. (All figures are in US dollars.) Adjusted for one-time items, revenue was $16.95 billion. Revenue rose to $30 billion, up 122% from last year and 15% from last quarter.
By comparison, S&P 500 companies as a whole are expected to deliver just 5% growth in quarterly profits, according to FactSet. Still, Nvidia shares fell nearly 4% in after-hours trading.
Third-quarter revenue is expected to reach USD $32.5 billion, the company says
Ryan Detrick, a market strategist at the Carson Group, said that despite the increase in income “it looks like the bar has just been set very high this earnings season.”
“Death, taxes, and the NVDA hit on earnings are three things you can't bank on,” Detrick said. “Here is the issue. The size of the beat at this time was much smaller than what we were seeing. Even future directions were suggested, but also not with the previous song.”
The company reported second-quarter adjusted earnings per share of 68 cents, up from 27 cents a year earlier. Nvidia said it expects third-quarter revenue to grow to $32.5 billion, plus or minus 2%.
Increasing demand for Nvidia chips and data centers
Nvidia has led the artificial intelligence sector to become one of the stock market's biggest companies, as tech giants continue to spend heavily on the company's chips and data centers needed to train and run their AI systems.
“People who invest in Nvidia's infrastructure are getting a return on it right away,” said Jensen Huang, Nvidia's founder and CEO, on a call with analysts. “It's the best ROI infrastructure, computing infrastructure investment you can make today.”
Demand for productive AI products that can write documents, create images and act as personal assistants has boosted sales of Nvidia's specialty chips over the past year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth more than $3 trillion.
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