Nvidia, the semiconductor giant, announced revenues and profits that exceeded expectations for the second quarter of the current fiscal year, even forecasting that the third quarter would also surpass analysts’ estimates due to strong demand for data centers.
In particular, the semiconductor manufacturer reported revenues of $30.04 billion, a 122% increase year over year for the second quarter that ended on July 28, significantly higher than the consensus estimates in a survey by LSEG, which projected revenues of $28.7 billion.
For the same period, the company’s net profits amounted to $16.6 billion or $0.67 per share, compared to $6.18 billion or $2.48 per share during the same period last year. Nvidia’s adjusted earnings per share were 68 cents, versus the analysts’ average forecast of 64 cents per share.
Sales in the data center sector, which includes AI semiconductors, increased by 154% year over year to $26.3 billion, representing 88% of the company’s total sales. Analysts had expected sales of $25.15 billion.
The sales in the computing sector also exceeded expectations, reaching $25.24 billion.
However, as the company clarified, the above sales did not all come from semiconductors, as $3.7 billion came from network product sales.
Meanwhile, the tech giant stated that it expects revenues of $32.5 billion, +/- 2% for the next quarter, again indicating higher than market estimates, which anticipate revenues of $31.77 billion. It also expects the adjusted gross profit margin to be around 75%, plus/minus 50 basis points during the third quarter, on average at the level that analysts place it, at 75.5%, according to LSEG.
Finally, the company announced that it is initiating a stock buyback program worth $50 billion.
As for the new generation of semiconductors, Nvidia stated that during the quarter it shipped samples of its new Blackwell chip and made a change in its manufacturing to make it more efficient, with the CFO stating that it expects to ship several billion dollars worth of products in the fourth quarter.