Chip developer: Nvidia exceeds revenue forecast expectations - stock rises
A sigh of relief on Wall Street: the chip giant has presented a solid quarterly report and can significantly increase profit and sales. Nevertheless, concerns are driving investors.
San Francisco – Nvidia has surpassed Wall Street expectations with its revenue forecast, causing the company's stock price to rise. The world's largest provider of high-performance processors for artificial intelligence (AI) projected sales of $108 billion for the upcoming third quarter, exceeding the average estimate of $104 billion by analysts from LSEG.
Nvidia had previously reported a significant increase in both revenue and profit in the previous quarter, with earnings per share rising to $2.22 and sales hitting around $96 billion, both surpassing expectations. Consequently, the stock price climbed by more than four percent after previously falling by about 1.5 percent during the day.
This performance has put Nvidia's stock up by 14.2 percent over the course of the year, while competitors AMD and Intel have seen their stock prices more than double. Nvidia's numbers are now seen as a key benchmark for determining whether the AI boom will continue and contribute to the growth of the US economy, prompting cautious anticipation ahead of the release of the earnings figures.
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