Nvidia Stock (NASDAQ: $NVDA) Update

Nvidia Co. (NASDAQ: $NVDA) is riding the wave of Artificial Intelligence, posting exceptional growth in top and bottom-line forecasts.

The company has played an important role in elevating the tech sector and legitimizing the ongoing AI boom. Microsoft’s surprise $13 billion bet on OpenAI’s ChatGPT has caused a surge in AI demand across all sectors. That has greatly benefited Nvidia, which produces the lead AI chipsets with its GPU technology. While the macroeconomic outlook is uncertain, AI seems unaffected, and the sector continues to boom.

Great Fiscal Report

Nvidia released its fiscal Q2 2023 results on August 23, 2023, for the quarter ending July 2023. The company reported earnings per share profit of $2.70, excluding non-recurring items, which was higher than the analysts’ estimates of $2.08. Revenues grew 101.5% year-over-year to $13.51 billion, higher than the estimates of $11.9 billion.

Revenues by Segment

The leading segment at Nvidia was Data Center, which experienced 171% year-on-year growth to $10.32 billion, driven by cloud services and large consumer internet firms. Demand for the NVIDIA HGX platform was spurred by the development and adoption of AI and large language models (LLMs). Revenue from the Gaming segment rose 22% to $2.49 billion, driven by the rising demand for its top GPUs, the GeForce RTX 40 Series.

The Automotive sector experienced an increase of 15% year-over-year to $253 billion. In contrast, Professional Visualization revenues fell 24% to $379 million. Engineering, design, and entertainment professionals create high-end visuals using products from the Professional Visualization segment. Some of the products from this segment include RTX and Quadro GPUs and the Omniverse software platform, used to render real-time 3D scenes.

Q3 Projections

The company raised in fiscal Q3 2023 projections from $15.68 to $16.32 billion, much higher than analysts’ $12.59 billion estimate. Nvidia expects its non-GAAP gross margins to rise 72%-73%. Additionally, the company has increased its stock buyback program by an additional $25 billion without expiration. This is in addition to the remaining $3.95 billion in the ongoing buyback program.

France Office Raid

French authorities raided the offices of Nvidia, according to a September 28 report by the Wall Street Journal. Nvidia has been accused of engaging in anticompetitive practices. However, the French regulator noted that the raid did not “presuppose a breach of the law.” A Citi analyst has predicted that Nvidia will own over 90% of the AI chips market share with each successive upgrade, which Advanced Micro Devices Inc. NYSE: AMD will have the second-largest share.

Click Here for Updates on Nvidia Stock – It’s 100% FREE to Sign Up for our Email Newsletter!

Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.