Market Commentary

Nvidia Hits Fresh Highs on Another Jaw-Dropping Outlook

Rahul Joshua
6 Feb 2024 · 1 minute read

Nvidia (NVDA:US) shares rose 5% in early Thursday trade following the chipmaker's positive performance in its fiscal second quarter and optimistic guidance for the current period. 

Adjusted earnings per share came in at $2.70, easily ahead of the consensus for a profit of $2.09 per share. Revenue for the quarter reached $13.51 billion, significantly exceeding the Refinitiv estimate of $11.22 billion.

“The world has something along the lines of about a trillion dollars worth of data centers installed, in the cloud, enterprise and otherwise,” Nvidia CEO Jensen Huang said on a call with analysts. “That trillion dollars of data centers is in the process of transitioning into accelerated computing and generative AI.”

Nvidia anticipates revenue for the fiscal third quarter to be around $16 billion, up or down 2%. Analysts were looking for just $12.61 billion. This guidance implies a 170% growth in sales for the current quarter compared to the same period in the previous year.

Nvidia's impressive revenue growth in the second quarter, doubling from the previous year and increasing 88% from the prior quarter, underscores its massive role in the ongoing AI transition.

In the meantime, Congress members continue to actively trade NVDA stock. Representative Michael Guest disclosed on Thursday that he bought some NVDA shares earlier this month.

Congressman Michael McCaul was buying the stock in June following Nvidia’s blowout earnings report for the first quarter.

Nvidia stock is up 229% year-to-date.