Nvidia Earnings Crush Views, Guidance Bullish, But Stock Dives – Investor's Business Daily

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Chipmaker Nvidia (NVDA) late Thursday trounced Wall Street’s sales and earnings targets for its fiscal second quarter and offered bullish guidance, but its shares fell hard in extended trading.

Nvidia earned 92 cents a share, up 124% year over year, on sales of $2.23 billion, up 56%, for the period ended July 30. Analysts expected 70 cents and $1.96 billion.

Nvidia shares tumbled 4% near 158 in after-hours trading on the stock market today. During the regular session, Nvidia fell 4.3% to 164.74. The stock hit an all-time high of 174.56 on Tuesday.

For the current quarter, Nvidia expects sales to rise 18% to $2.35 billion. It did not give an earnings-per-share target. Wall Street had been modeling earnings per share of 79 cents on sales of $2.13 billion vs. 83 cents and $2 billion in the year-earlier period.

Santa Clara, Calif.-based Nvidia is best known for its graphics processors for personal computers and video game consoles. But it has a growing business in providing high-performance computing chips for data centers, artificial intelligence, machine learning and self-driving cars.

“Adoption of Nvidia GPU (graphics processing unit) computing is accelerating, driving growth across our businesses,” Jensen Huang, Nvidia founder and chief executive, said in a news release. “Data-center revenue increased more than two and a half times. A growing number of car and robot-taxi companies are choosing our Drive PX self-driving computing platform. And in gaming, increasingly the world’s most popular form of entertainment, we power the fastest growing platforms — GeForce and Nintendo Switch.”

Huang touted the power of its Volta graphics processing unit for artificial intelligence applications.

“This quarter, we shipped Volta in volume to leading AI customers,” he said. “This is the era of AI, and the Nvidia GPU has become its brain. We have incredible opportunities ahead of us.”

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