ALBAWABA - Following the company's Wednesday earnings announcement, which exceeded Wall Street projections and demonstrated the continued fierce demand for its artificial intelligence processors, Nvidia's shares surged by almost 10% on Thursday, with revenue from the company's data centers increasing by an astounding 427% during the quarter.
Revenue for the first quarter exceeded expectations, coming in at $26.04 billion in contrast to the LSEG projection of $24.65 billion, as reported by CNBC, with Nvidia noting that it anticipates revenues for the current quarter to reach $28 billion, greater than the $26.61 billion LSEG projection.
“The next industrial revolution has begun,” said CEO and founder of Nvidia, Jensen Huang, adding that “companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”
Huang explained that robust and increasing demand for generative AI training inference and training on the Hopper platform drove Nvidia's data center expansion, noting how several multibillion dollar sectors have been established thanks to generative AI as it begins spreading into businesses, governmental AI, automobiles and healthcare industries.
In comparison to the $2.04 billion, or 82 cents per share, it recorded in the same quarter last year, Nvidia announced a net income of $14.88 billion, or $5.98 per share, as well as a 10-to-1 stock split, scheduled to take place on June 10 at market open, with shares exchanging on a split-adjusted rate.
