US chipmaker Nvidia on August 23 exceeded expectations as the company reported revenue of $13.51 billion, which was up 101 percent from a year ago and up 88 percent from the previous quarter for the quarter that ended on July 30, 2023.
AI boom
Nvidia's forecast beat expectations by a huge margin, which shows that a boom in generative Artificial Intelligence (AI) technologies shows no signs of slowing down.
According to a Reuters report, "Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Nvidia's chief executive, Jensen Huang said.
Also Read: Nvidia was the biggest contributor to Nasdaq 100's 36% surge
The company's entire AI systems were the largest contributor to the quarter's growth, according to its executives.
Nvidia's quarterly report lifts AI stocks
Nvidia's strong quarterly revenue forecast sparked gains in many AI-related stocks on August 23. The company's stock jumped almost 10 percent after the bell to a record high of $516.
As per Reuters, AI software maker C3.ai jumped 5.6 percent and Palantir Technologies rose almost 5 percent. Advanced Micro Devices and Broadcom both were up over 3 percent, Marvell Technology climbed 5 percent whereas Super Micro Computer jumped over percent.
Also Read: Indexes end sharply higher; AI chip maker Nvidia jumps again after the bell
Optimistic Q3 Forecast
According to the news website Shacknews, Nvidia's revenue is expected to be $16.00 billion. GAAP and non-GAAP gross margins are expected to be 71.5 percent and 72.5 percent, respectively. GAAP and non-GAAP operating expenses are expected to be approximately $2.95 billion and $2.00 billion, respectively.
With inputs from agencies
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