Nvidia’s Second-Quarter Results Exceed Expectations, Boosting AI Market
Traders on the New York Stock Exchange eagerly awaited chipmaker Nvidia’s second-quarter results, hoping to gain insight into the current state of the artificial intelligence (AI) market. Stock futures were on the rise in premarket trade, with the S&P 500 futures climbing 0.7%, Nasdaq 100 futures gaining 1.26%, and Dow Jones Industrial Average futures up 0.12%.
Nvidia did not disappoint, as the company reported earnings of $2.70 per share after adjustments on $13.51 billion in revenue. These figures exceeded the average analyst estimate from Refinitiv, which predicted $2.09 per share in profits and $11.22 billion in revenue.
The company’s impressive first-quarter report in May had already garnered significant attention and investor interest in the AI market. The surge in interest propelled Nvidia’s value to over $1 trillion. Executives at Nvidia raised their forecast once again, with third-quarter revenue expected to reach $16 billion, a remarkable increase of 170% on an annual basis.
Analysts saw Nvidia’s results as a pivotal moment in AI demand and predicted a significant impact on the tech sector for the rest of the year. Dan Ives, senior equity research analyst at Wedbush Securities, referred to the results and guidance as a “drop the mic” moment.
The positive news from Nvidia also had a ripple effect on other semiconductor stocks, which saw gains in after-hours trading. Shares of Taiwan Semiconductor rose by 3.1%, while AMD climbed nearly 4%. Marvell Technology also experienced a gain of 5.4%.
Investors are now eagerly awaiting comments from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium in Wyoming on Friday. These remarks are expected to shed light on the future path of benchmark interest rates, providing further guidance for Wall Street.
With Nvidia’s exceptional performance and the continuous growth of the AI market, investors remain optimistic about the tech sector’s prospects throughout the year.