AI giant Nvidia (NVDA) reported its second-quarter results after the stock market closed on Wednesday, beating expectations for both revenue and profit as well as expected forecasts for the coming quarter.
For the quarter, the company reported earnings per share of $0.68 on revenue of $30 billion. Analysts had expected earnings per share of $0.64 and revenue of $28.8 billion. That’s a massive increase from the same period last year, when Nvidia reported earnings per share of $0.27 and revenue of $13.5 billion.
The company also gave third quarter revenue guidance of $32.5 billion, plus or minus 2%, while analysts expected $31.9 billion. The company also announced a
The chip giant’s shares fell 6 percent following the announcement.
The majority of that revenue came from Nvidia’s all-important data center business, which brought in $26.3 billion in the quarter. Wall Street had expected $25 billion. In the same quarter last year, the company earned just $10.3 billion in that segment.
Nvidia is the world leader in AI chip design and software, controlling between 80% and 95% of the market, according to Reuters. And the company is expected to maintain that lead as it begins rolling out its next Blackwell series of chips.
Still, Nvidia’s competitors aren’t resting on their laurels. Earlier this month, AMD announced it was acquiring ZT Systems in a deal valued at $4.9 billion. The move gives AMD more firepower to build AI system servers, which has been a major catalyst for Nvidia’s own sales.
And while this could give AMD a revenue boost, it doesn’t mean Nvidia’s reign as AI king will be under serious threat any time soon.
“There are emerging competitors like AMD that are starting to take a little bit of market share,” Stifel chief executive Ruben Roy told Yahoo Finance on Monday. “But when you look at the entire infrastructure spending cycle … which we believe will continue to increase, Nvidia seems to us to be best positioned to benefit from (the spending).”
Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
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