Nvidia's Shares Jumps 20% on Massive Data Center Revenues
May 26, 2023 | Posted by Abdul-Rahman Oladimeji
In extended trading last Wednesday, Nvidia shares surged significantly after the company surpassed analysts' revenue estimates and reported record data center sales. The Santa Clara, California-based semiconductor manufacturer reported a 19% increase in first-quarter revenue compared to the previous quarter. The results also showed a 13% decline compared to last year's quarter, with analysts anticipating a 21% decline. Earnings per share were $1.09, down 20% from the previous year. The net income of $2.04 billion was up 26% from the previous year.
CEO Jensen Huang stated that the industry was undergoing "two simultaneous transitions" in accelerated computation and artificial intelligence (AI). According to management, revenue for the second quarter would reach $11 billion. Huang stated that global data center infrastructure worth one trillion dollars would transition from general-purpose to accelerated computation. He noted that the company was growing its supply of data center products to satisfy "surging demand."
Nvidia also announced last week that it would integrate its AI enterprise software with Microsoft's Azure Machine to accelerate AI use cases for corporations.2 Shares of Nvidia surged more than 20% in extended trading following the earnings report and were up more than 100% on the year.