Nvidia shares jump 21 percent as sales forecast rises, AI rises

Nvidia Corp on Wednesday forecast second-quarter revenue more than 50% above Wall Street estimates, and the company said it is increasing supply to meet growing demand for its artificial intelligence chips, which are used to power ChatGPT. and many similar services.

Shares of Nvidia, the world’s most valuable listed semiconductor company, rose as much as 21% to a record $370 in extended trading. Nvidia’s post-bell rise boosted its stock market value by nearly $150 billion to more than $900 billion, extending the Silicon Valley company’s lead as the world’s most valuable semiconductor firm.

The rise of artificial intelligence has helped Nvidia become the fifth most valuable US company by market value.

Nvidia has struggled to keep up with demand for its AI chips, and Tesla Inc CEO Elon Musk, who is reportedly building an AI company, earlier this week told an interviewer that Nvidia units graphics processing (GPU) are “considerably more difficult to handle”. get that drugs”.

But Nvidia CEO Jensen Huang said in a statement Wednesday that the company is “significantly increasing our supply to meet growing demand” for its data center chips.

Analysts believe Nvidia has reallocated some supply chain capacity from the free-falling PC gaming market to its data center AI chips. Its PC gaming chips sell for as much as $1,500, while its artificial intelligence chips sell more than ten times for around $20,000 each.

Nvidia forecast revenue for the current quarter of $11 billion, plus or minus 2%. Analysts surveyed by Refinitiv expect revenue of $7.15 billion.

Adjusted revenue for the quarter ended April 30 was $7.19 billion. Analysts polled by Refinitiv had expected revenue of $6.52 billion. The company’s data center chip sales reached $4.28 billion, beating analyst estimates of $3.89 billion, according to segment data from FactSet.

Gaming chip revenue topped Wall Street expectations by $2.24 billion versus estimates of $1.97 billion, according to FactSet data.

Net income increased to $2.04 billion, or 82 cents per share, from $1.62 billion, or 64 cents per share, a year earlier. Excluding items, the company earned $1.09 per share in the first quarter, beating estimates of 92 cents.

(This story has not been edited by News18 staff and is published from a syndicated news agency – trendswire)