NVIDIA Corporation (NASDAQ:NVDA) stock advanced another 7.5% in Thursday morning’s early deals after the chipmaker smashed Wall Street’s high expectations, with key revenue lines coming in billions of dollars better that forecast.
Soaring demand for AI-powering processors saw group revenue hit $13.51 billion, ahead of forecasts that were only upgraded a matter of months ago. Wall Street pencilled expectations of some $11.22 billion of revenue ahead of the results, and that was at the top end of Nvidia’s own guidance.
It posted earnings of $2.70 per share, comfortably beating forecasts for $2.08.
Significantly, Nvidia’s data center unit which makes semiconductors for cloud computing devices and AI applications delivered $10.32 billion of revenue, some $3 billion more than the market had anticipated.
Such is the rapid growth that Nvidia again upgraded its outlook, setting guidance for the current quarter to $16 billion, up from $12.6 billion.
As ever, demand for Nvidia’s A100 and H100 artificial intelligence chips also played a crucial role.
“A new computing era has begun,” CEO Jensen Huang said in the press release. “Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI.”
Nvidia was already the best-performing stock on the S&P 500 in 2023 before its results came out. Now it’s just padding its lead, up nearly 9% to $513.27.