‘The race is on’ for AI: Nvidia CEO bullish as Q2 revenue tops estimates

Shares of computer chip manufacturer Nvidia soared nearly 10% in after-hours trading as surging demand for AI chips saw the firm post Q2 earnings that significantly beat Wall Street estimates.

In its Q2 earnings report, the company posted a whopping $13.5 billion in revenue for the quarter — an 88% increase from Q1. The revenue figure came in at over $2 billion more than the $11.2 billion that analysts had predicted for the company.

Additionally, Nvidia reported $2.48 earnings per share (EPS), which surpassed consensus analyst estimates of $2.08, according to data from Google Finance. The company’s Q2 EPS was up a staggering 854% year-over-year.

<em>Nvidia (NVDA) Q2 earnings summary. Source: Nvidia</em>

“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA in a statement.

The race is on to adopt generative AI,” Huang added.

<em>Nvidia (NVDA) share price in the last 24 hours. Source: TradingView</em>

While competitors such as Intel and Micron Technologies have continued to focus the bulk of their efforts on manufacturing chips for existing services such as data centers and cloud computing — Nvidia has honed in research and development for chips and graphics card units that power AI systems — allowing it to capitalize significantly on the recent AI boom.

Related: UK to spend $130M on AI chips amid scramble to buy up computing power

Looking forward, the company predicted that its revenue would increase an additional 18% to $16 billion by Q3 this year.

In the last 10 months, Nvidia’s share price has ballooned by more than 300%, causing its market capitalization to top $1.16 trillion at the time of publication, according to data from Google Finance.

The rapid growth has seen Nvidia join an exclusive club of just six companies — Apple, Microsoft, Saudi Aramco, Alphabet (Google) and Amazon — to top a trillion-dollar valuation.

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