Nvidia Stock Soars as AI Chip Maker’s Q2 Earnings and Guidance Demolish Expectations
Nvidia crushed Wall Street's expectations in multiple metrics, including revenue, adjusted EPS, and forward guidance.
After the closing bell on Wednesday, Nvidia (NASDAQ: NVDA) reported its second-quarter 2024 earnings, blowing analysts’ expectations out of the water in nearly every metric, including forward guidance for Q3 2024. In what most pundits called a make-or-break earnings report that would determine whether the 2023 AI boom continued its unprecedented run, AI chip giant Nvidia delivered in spades.
The company reported Q2 revenue of $13.51 billion, up 88% from Q1 and 101% year-over-year. Adjusted earnings per share for the second quarter soared to $2.70, up 148% quarter-over-quarter and 429% over last year.
Nvidia also saw record data center revenue for the quarter of $10.32 billion, up 141% from the previous quarter and 171% year-over-year. To top things off, the company issued forward revenue guidance for Q3 2024 of $16 billion +/- 2%, smashing Wall Street’s projection of $12.5 billion.
In a statement, Nvidia CEO Jensen Huang commented on the company’s blowout Q2 earnings, stating:
“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI.”
Nvidia Beats the Street Up and Down the Board
As mentioned, Nvidia crushed Wall Street analysts’ expectations in every category.
Let’s take a moment to recap Nvidia’s historic earnings and review the numbers to see just how badly NVDA beat the street:
- Revenue: $13.51 billion – +88% q-o-q and +101% y-o-y
- Street Expectation: $11.04 billion
- Beat the Street: Yes
- Street Expectation: $11.04 billion
- Data Center Revenue: $10.32 billion – +141% q-o-q and 171% y-o-y
- Street Expectation: $7.98 billion
- Beat the Street: Yes
- Street Expectation: $7.98 billion
- Adjusted EPS: $2.70 +148% q-o-q and 429% y-o-y
- Street Expectation: $2.07
- Beat the Street: Yes
- Street Expectation: $2.07
- Q3 2024 Revenue Guidance: $16 billion
- Street Expectation: $12.5 billion
- Beat the Street: Yes
- Street Expectation: $12.5 billion
CEO Huang added:
“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI. NVIDIA GPUs connected by our Mellanox networking and switch technologies and running our CUDA AI software stack make up the computing infrastructure of generative AI.”
Watch Nvidia’s Q2 2024 Earnings Call:
Source: Benzinga YouTube
Shares of Nvidia closed trading on Wednesday at $471.16 per share, up 3.17% on the day. In after-hours trading, NVDA stock traded as high as $517.88 and is currently changing hands at $499.05, up 5.98% in after-hours. YTD, NVDA stock is up 229.14%.
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