The NVIDIA Corp (NASDAQ: NVDA) share price rose 6.57% after announcing its quarterly results for its Q2 fiscal 2024 year. The company’s revenues beat expectations after reaching $13.51 billion, up 88% from Q1 and 101% from a year ago.
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The AI chip manufacturer noted that its data centre revenue was $10.32 billion, marking a 141% increase from Q1 and 171% from a year ago. The company’s GAAP earnings per diluted share for the quarter were $2.48, an increase of 854% from a year ago and 202% from the previous quarter.
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The company’s Non-GAAP earnings per diluted share were $2.70, an improvement of 429% from a year ago and 148% from the previous quarter. The company returned $3.38 billion to shareholders by repurchasing 7.5 million shares for $3.28 billion and other cash dividends.
Nvidia revealed that it had $3.95 billion remaining under its share repurchase authorisation. Furthermore, the board of directors approved an additional $25 billion share repurchases on August 21, 2023, without expiration. The company will continue with share repurchases throughout the fiscal year.
The chip manufacturer updated its Q3 fiscal 2024 guidance, expecting its revenues to be $16.00 billion, plus or minus 2%. The company expects its GAAP and non-GAAP gross margins to be 71.5% and 72.5%, respectively, plus or minus 50 basis points.
Nvidia expects its GAAP and non-GAAP operating expenses to be about $2.95 billion and $2.00 billion, respectively. The GAAP and non-GAAP other income and expenses are expected to be an income of approximately $100 million, excluding gains and losses from non-affiliated investments.
Jensen Huang, founder and CEO of NVIDIA, said: “A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI. NVIDIA GPUs connected by our Mellanox networking and switch technologies and running our CUDA AI software stack make up the computing infrastructure of generative AI. During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT systems and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI.”
Nvidia share price.
The Nvidia share price rose 6.57% to trade at $502.10, from Wednesday’s closing price of $471.16.
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