Nvidia NVDA, undoubtedly the most anticipated company for the second quarter earnings season, has finally reported its results. So far, shares have reacted negatively, recording a decline in after-hours trading.
Let’s take a quick look at the company’s achievements.
Nvidia reports record sales
The AI favorite posted record quarterly revenue of $30 billion, up 15% from the first quarter and an even more impressive 122% year-over-year increase. The company’s revenue growth has been remarkable, and the results for this period suggest the fourth consecutive quarter of triple-digit percentage year-over-year revenue growth.
Naturally, the focus of the release was on the results of the data center business, which once again achieved great success. Data center revenues reached a quarterly record of $26.3 billion, up 16% from the first quarter and 154% year-on-year.
Jensen Huang was unsurprisingly optimistic about the data center, stating: “Demand for Hopper remains strong and the anticipation for Blackwell is incredible.”
He continued: “NVIDIA achieved record revenues as global data centers ramped up to modernize the entire computing stack with accelerated computing and generative AI.”
Although the gross margin declined compared to the previous quarter, the figure of 75.7% reflected a continued margin improvement compared to the same period last year.
Nvidia’s gaming results are also an important area that investors should keep a close eye on going forward, especially as AI PCs become more popular. Gaming revenue reached $2.9 billion, a nice 16% increase from the same period last year.
As for the third quarter outlook, Nvidia expects revenue of $32.5 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.4% and 75.0%, respectively.
Should you buy Nvidia stock?
Nvidia NVDA has finally reported its second quarter results. The reaction following the results release has been negative so far, although the company has once again released a record-breaking report that confirmed strong demand. The stock remains a top pick for anyone looking to gain exposure to the AI space. Short-term price movements should be ignored by those with a long-term investment horizon.
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