AI Behemoth Nvidia Beats Wall Street Estimates By Earning Record Revenue Of $13.51 Billion, Up 101%

US-based tech player, Nvidia has impressed investors with its robust earnings report in the second quarter of fiscal 2024. The world leader in Artificial Intelligence (AI) computing earned a record revenue of $13.51 billion in the quarter ending June 30, 2023, rising by 101% year-on-year. Sequentially, revenue was up by 88%. Nvidia's AI business is booming as industries are transitioning to adopt generative AI.

Also, the company witnessed record Data Center revenue of $10.32 billion, up 141% from Q1, up 171% from year ago.

The chipmaker garnered a net income of $6.188 billion, skyrocketing by a breathtaking 843% YoY and 203% QoQ. Operating income growth is at sky-high of 1,263% YoY and 218% QoQ to $6.800 billion in the quarter.

Nvidia's gross margins also expanded sharply to 70.1% in Q2 of FY24 versus 43.5% in Q2 FY23 and 64.6% in Q1 FY24.

Another key factor that was a cherry on the cake for Nvidia's earnings would be its operating expenses which saw only slight upside against the triple-digit growth across other key verticals. It reported operating expenses of $2.662 billion in Q2, up by 10% YoY and 6% QoQ.

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."

He highlighted that 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.

Further, Huang added, "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."

The company's GAAP earnings per diluted share for the quarter were $2.48, up 854% from a year ago and up 202% from the previous quarter. Non-GAAP earnings per diluted share were $2.70, up 429% from a year ago and up 148% from the previous quarter.

In the second quarter, NVIDIA returned $3.38 billion to shareholders in the form of 7.5 million shares repurchased for $3.28 billion, and cash dividends. As of the end of the second quarter, the company had $3.95 billion remaining under its share repurchase authorization.

Earlier this month, the company's Board of Directors approved an additional $25.00 billion in share repurchases, without expiration. NVIDIA plans to continue share repurchases this fiscal year.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on September 28, 2023, to all shareholders of record on September 7, 2023.

The Nasdaq-listed firm's stock price ended at $471.16, up 3.17% on Wednesday. Nvidia's earnings have kept the market on the hook since the start of this week's trading sessions, and the company has not disappointed traders.

Nvidia is a multi-bagger stock with an upside of a whopping 229% year-to-date on Nasdaq.