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Nvidia stock jumps after big earnings beat, 10-for-1 stock split announcement

In Business
May 23, 2024
Jensen Huang presenting chips onstage.

Jensen Huang presents at Nvidia’s GTC conference in 2024Justin Sullivan/Getty Images

  • Nvidia stock jumped as much as 5% after it reported first-quarter earning results on Wednesday. 

  • The company beat profit and revenue estimates thanks to continued strength in its GPU business.

  • Nvidia boosted its dividend and announced a 10-for-1 stock split.

Nvidia stock surged to record highs in after-hours trading on Wednesday after the company reported its first-quarter earnings results.

Shares of the chip maker jumped as much as 5% to about $993 per share following its earnings release. The company reported a 262% surge in year-over-year revenues, driven by the continued success of its AI-enabled GPU chips, mainly the H100.

Here were the key numbers:

  • Revenue: $26.04 billion, versus analyst estimates of $24.65 billion

  • Data center revenue: $22.6 billion, representing a 427% surge from the year-ago quarter

  • Adjusted earnings per share: $6.12, versus analyst estimates of $5.59

Nvidia also offered solid revenue guidance for the second quarter, at $28 billion versus analyst estimates of $26.61 billion, signaling that it expects continued strong sales even as customers await its next-generation GPU chip, Blackwell, set to be released in the second half of the year.

“We are poised for our next wave of growth. The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI,” Nvidia CEO Jensen Huang said.

The company announced a 10-for-1 stock split, effective next month. It also increased its quarterly dividend by 150% from $0.04 to $0.10 per share.

Analysts will be eagerly awaiting Huang’s comments on the company’s conference call, looking for potential direction as to where he sees the AI chip market going throughout the rest of the year and beyond.

“Even in the face of huge expectations, the company once again stepped up and delivered. The always important data center revenue was strong, while future revenue was also impressive. Bottom line, the bar was high and cleared it once again,” Carson Group’s Ryan Detrick said.

Read the original article on Business Insider

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