Nvidia's Q2 Shock: Surging Sales, Profits Validate AI Enthusiasm
Nvidia's (NASDAQ:NVDA) latest quarterly earnings, unveiled last night, were nothing short of a thrilling surprise, exceeding already high expectations by a significant margin.
The driving force behind this exceptional performance? The surging demand for AI across every facet of our economy.
Anticipating an earnings per share (EPS) of $2.09, a figure that was already nearly double the Q1 EPS, industry pundits were caught off guard when the actual number soared to $2.70, surpassing their predictions by a staggering 30%.
But the excitement doesn't end there. Nvidia's revenue skyrocketed to a jaw-dropping $13.51 billion, nearly doubling the previous quarter's $7.19 billion and leaving analysts in awe with a more than 20% overachievement compared to their forecasts.
Given this positive surprise, Nvidia's stock, which had already risen over 3% during regular trading, surged over 6.5% in after-hours trading. This surge is likely to continue during today's trading session.
At this point, Nvidia's stock has gained over 222% since the beginning of the year, making it by far the best-performing tech stock in an overall positive 2023.
Going into more detail, the announced Q2 revenue of $13.51 billion corresponds to a yearly growth of 101%. However, in addition to this remarkable revenue growth, Nvidia managed to significantly boost its profitability.
In fact, the company's gross margin increased by over 25 percentage points compared to the same quarter of the previous year, reaching 71.2% – an unprecedented level for a physical product.
Consequently, net income came in at $6.7 billion, a staggering +420% increase year-over-year.
By segment, Nvidia reported revenues of $10.3 billion from data centers, a 170% annual increase, and $2.5
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