Home
News
- 1 NVIDIA announced its financial results for Q2 2023 yesterday, August 23, 2023, and NVDA share price also showed a bullish trend.
- 2 The sales of NVIDIA surged as the AI boom pushed the earnings upside.
NVIDIA Corporation, an American multinational technology company and one of the leaders in Artificial Intelligence (AI) computing announced financial results for the second quarter of fiscal 2024. According to its result, the revenue for Q2 2023 ended July 30, 2023, of $13.51 Billion. This reported revenue is up 101% from a year ago whereas it was up 88% from the previous quarter (Q1 2023).
On the earnings day, NVDA stock price added $14.48 and rose 3.17% whereas it closed at the price of $471.16. The trading range of NVDA stock was between $472.00 to $452.08, whereas the opening price was $458.66. By showing over 77 Million volume in a day, NVDA share climbed upside from its 20-day EMA with bulls’ potential support.
The Earnings and Sales Update of NVIDIA
The Q2 2023 report also highlighted the company’s GAAP earnings per diluted share that was $2.48. It rose 854% from a year ago meanwhile it was up 202% from the previous quarter. Non-GAAP earnings per diluted share were $2.70, up 429% from a year ago and up 148% from Q1 2023.
NVIDIA suggests its sales in Q2 2023 will rise 170% from the year-earlier period. The company’s strong sales and forecast highlights how central its graphics processing units (GPUs) have become to the generative AI boom.
The AI chip maker also added that “it saw its adjusted gross margin increase 25.3 percentage points to 71.2%, because of growth in profit-rich data center sales.”
In this recent quarter report, NVIDIA returned $3.38 Billion to shareholders in the form of 7.5 Million shares repurchased for $3.28 Billion, and cash dividends. By the end of Q2 2023, the company had $3.95 Billion remaining under its share repurchase authorization.
Earlier this week on August 21, 2023, the Board of Directors approved an additional $25.00 Billion in share repurchases, without expiration. The chip maker company plans to continue share repurchases this fiscal year. Additionally, the company will pay its next quarterly cash dividend of $0.04 per share on September 28, 2023, to all shareholders of record on September 7, 2023.
The CEO Talk
Jensen Huang, the founder and CEO of NVIDIA, also shares his thoughts. He said: “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT systems and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI,” Huang said.
Moreover, Colette Kress, Chief Financial Officer of NVIDIA, also remarked on the earnings call that “the company would not be immediately affected by proposed Biden administration export restrictions on chips.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
