Nvidia stock jumps after early dip following results; AI fever is unabated
Nvidia shares experienced volatility following a strong quarterly earnings report that beat consensus estimates. The company continues to see massive growth in data center revenue, reinforcing its position as a leader in the AI infrastructure market.
Why it matters
Nvidia's performance is a critical bellwether for the broader AI sector and global tech spending.
Nvidia’s ( NVDA-Q ) investors got a roller coaster ride after the market closed on Wednesday, with its shares jumping after an early dip following the company’s quarterly results, highlighting Wall Street’s elevated expectations for its favorite AI chip designer.
Nvidia handily beat the consensus estimates for its second quarter and raised its third-quarter guidance. Second-quarter data center revenue rose 117% from a year ago to US$89 billion, and the company said third-quarter revenue across the Santa Clara, California, firm should hit US$108 billion, give or take.
Fans of the company saw more good news for the AI trade. But at first it was not quite good enough after a long run by Nvidia and the other megacap tech stocks. Shares opened the after-hours session lower and were little changed in late trading in the 40 minutes following the report.
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