Nvidia posted another quarter of record earnings Wednesday, and its shares gained as a forecast of accelerating growth helped calm rising anxiety throughout the market surrounding the viability of the artificial-intelligence trade and fears about overspending on AI infrastructure.
For the quarter ended in July, Nvidia reported record sales of $96.2 billion, or 4% higher than the $92.3 billion analysts polled by FactSet had expected. Net income of $59.7 billion and earnings per share of $2.46 also beat analyst expectations by wide margins.
Chief Executive Officer Jensen Huang said demand is only accelerating. He also touted the rollout of the company’s latest chip line, Vera Rubin.
“The AI infrastructure build-out is at full steam,” he said. “Vera Rubin, now in full production, was built to power exactly this moment.”
The crucial data-center segment, which includes most of the AI servers for which Nvidia is best-known, produced sales of $89 billion. Analysts had expected $86.3 billion.
Nvidia’s shares gained more than 4% in after-hours trading after Chief Financial Officer Colette Kress, speaking on a call with investors and analysts, said the company expects revenue to grow 70% in 2028.
A flurry of dealmaking activity and product-related news over the past few months has thrust Nvidia—the world’s largest publicly traded company and dominant designer of advanced computer chips—even closer to the center of the AI boom.
The company warned that margins would narrow in the coming months while Nvidia copes with a surge in memory costs. It expects the measure to bottom out in the fiscal fourth quarter — a period that runs through January — at 71% to 72%.
As Nvidia increases its own prices, the range should settle down to 72% to 73% in fiscal 2028, Kress said.
The broader message was that there’s…
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