Published • loading... • Updated
Nvidia jumps 6% in premarket trading after blockbuster earnings boost AI confidence
The chipmaker forecast 70% revenue growth next fiscal year and topped Wall Street estimates with $96.2 billion in second-quarter revenue.
- On Thursday, Nvidia shares rose about 6 per cent in premarket trading as investors embraced the chipmaker's strong long-term outlook, betting that the global race to build AI infrastructure will fuel years of rapid growth.
- The company reported second-quarter revenue of $96.2 billion, driven by $89 billion in data center sales, as CEO Jensen Huang said AI reached an "inflection point" that will sustain 70 per cent revenue growth.
- Nvidia signaled demand is broadening to CoreWeave, Nebius, and Amazon Web Services, while Analysts at Morgan Stanley said "70 per cent growth supply constrained is a remarkable figure," prompting at least 10 brokerages to raise price targets.
- Despite the gains, the stock trades at 17.9 times forward earnings, well below Advanced Micro Devices' 37.2 times and Intel's 46.2 times, while Nvidia faces persistent supply constraints from manufacturer TSMC.
- OpenAI and hyperscalers pose a "threat" to Nvidia's near monopoly with custom semiconductors, a concern lingering after shares fell nearly 12 per cent from their May peak amid investor demands for lasting growth evidence.
Insights by Ground AI
5 Articles
5 Articles
Coverage Details
Total News Sources5
Leaning Left1Leaning Right0Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
L 20%
C 80%
Factuality
To view factuality data please Upgrade to Premium
