Nvidia beats expectations with Q2 results and bullish Q3 guidance, announces $25 billion share buyback

livemint.com:

ChatGPT language-generation tool. AI is growing rapidly and many companies now see AI as critical to their future growth.

Nvidia’s strong quarterly sales numbers and guidance point out the significance of the company’s graphics processing units (GPUs) for the generative AI boom. As per CNBC, "Nvidia’s A100 and H100 AI chips are needed to build and run AI applications like OpenAI’s ChatGPT and other services that take simple text queries and respond with conversational answers or images." The CNBC report highlighted that Nvidia’s data centre business, which includes AI chips, drove its stellar performance as large consumer internet companies and cloud service providers, including Alphabet, Amazon and Meta grabbed next-generation processors.

The company reported $10.32 billion in revenue for the group, up 171 per cent year over year and above the $8.03 billion estimate, according to StreetAccount. Nvidia’s shares are the top performer in the S&P 500 index as they have more than tripled for the year.

Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before taking any investment decisions.