Nvidia lifts after results top estimates, stock split
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The news: Shares in Nvidia Corp gained in extended trading after the chipmaker impressed investors with a better-than-expected second quarter forecast and announced a ten-for-one stock split.
The numbers: Its first-quarter revenue surged 262% year-on-year to USD26.04 billion ($39.34 billion), beating estimates of USD24.65 billion. Net income soared 628% to USD14.88 billion. It forecast second-quarter revenue of USD28 billion, ahead of analysts expectations of USD26.66 billion.
The California-based company said its ten-for-one stock split would be effective 7 June and it was also raising quarterly dividend by 150% to 1 US cent per share. Nvidia shares rose 6.7% in after hours trading in New York to hit a record USD1,013.
The context: The chip maker's market value has tripled in the past year on AI optimism. Demand for Nvidia's graphics processing units stands unparalleled as enterprises spend billions to procure advanced semiconductors to power data centres capable of processing complex AI tasks.
Technology companies including Alphabet, Microsoft, Amazon.com and others have been competing for a limited supply of Nvidia's high-end chips as they race to dominate AI computing. The high performance of Nvidia's chips makes them difficult to replace in present AI data centres. Adding to this lead is its proprietary CUDA software framework that developers use to program the AI processors.
The sources: Nvidia earnings release, Reuters
