Nvidiaforecast quarterly revenue above estimates on Wednesday and announced a stock split, lifting its shares to record-high territory and impressing investors who have tripled the chipmaker’s market value in the past year on AI optimism.
Nvidia shares jumped 5.9% to $1,005 in extended trade, peaking above the psychologically important $1,000 mark and adding about $140 billion in stock market value.
The AI poster child’s stock has surged 90% so far this year, and a close at Wednesday’s after-hours price in the next day’s Wall Street trading session would be a new record high.
The Santa Clara, Calif.-based company said it would split its stock 10-for-one, effective on June 7. It also said it was raising its quarterly dividend by 150% to 1 cent per share, on a post-split basis.
“Death, taxes, and NVDA beats on earnings. Even in the face of huge expectations, the company once again stepped up and delivered,” said Ryan Detrick, chief market strategist at Carson Group. “The always important data center revenue was strong, while future revenue was also impressive.”
Wall Street’s main event so far this week, Nvidia’s earnings report could add fresh fuel to a stock market rally that has lifted indexes to record highs this year.
FollowingNvidia’s results,shares of rival AI-related chipmakersAdvanced Micro Devicesand Broadcomeach rose about 2%.
Alphabet, Microsoft, Amazonand other technology companies have been competing for a limited supply ofNvidia’s high-end chips as they race to dominate AI computing.
During a conference call with analysts, CEO Jensen Huang said Nvidia’s upcoming Blackwell AI chips will ship in the current fiscal quarter, with production increasing in the following quarter.
Chief Financial Officer Colette Kress said demand for Blackwell chips could exceed supply “well into next year.”
Nvidia’s contract chipmaker, Taiwan Semiconductor Manufacturing, has also been working to increase its advanced packaging capacity, a key supply-chain constraint for the processors. The Taiwanese company said in April it expects to more than double its advanced packaging capacity this year.
Nvidia forecast fiscal second-quarter revenue of $28 billion, plus or minus 2%. Analysts on average were expecting revenue of $26.66 billion, according to LSEG data.
First-quarter revenue surged 262% year-over-year to $26.04 billion, beating estimates of $24.65 billion. Net income soared 628% to $14.88 billion.
“Demand for NVIDIA’s GPU chips remains white-hot,” said Logan Purk, an analyst at Edward Jones. “These results are likely enough to satiate investors’ appetites, and reassure the market that AI investment has not seen a slowdown yet.”
Dominating more than 80% of the market for AI chips, Nvidia stands in a unique position as both the largest enabler as well as beneficiary of surging AI development.
Sales at the data center segment, its largest by revenue, grew 427% to $22.6 billion in the first quarter ended April 28, coming in above estimates of $21.320 billion, according to data from FactSet.
AmongNvidia’s customers is Meta Platforms, which last monthincreased the midpointof its 2024 capital expenditure forecast by about $4 billion.
The high performance of Nvidia’s chips makes them difficult to replace in present AI data centers. Adding to this lead is its proprietary CUDA software framework that developers use to program the AI processors.
While most so-called hyperscalers are also developing their own custom AI chips, analysts do not expect these to eat away at Nvidia’s market share.
Nvidia expects second-quarter adjusted gross margin to be 75.5%, plus or minus 50 basis points. Analysts on average forecast gross margin to be 75.8%.
Nvidia reported first-quarter adjusted gross margin of 78.9% compared with estimates of 77%. Aspiring competitor AMD had recorded an adjusted margin of 52% in its fiscal first quarter.
Excluding items, the company earned $6.12 per share in the first quarter, beating estimates of $5.59.
In the marginal seat of North East Fife in this election, it is not a straight fight between red and blue, but shades of yellow too.
In 2017, the SNP won here by just two votes ahead of the Scottish Liberal Democrats. That astonishing two-vote tipping point made it the UK’s most marginal seat at the time.
But in 2019, the Lib Dems won it from the SNP, giving the party one of its four MPs in Scotland.
Today, Lib Dem posters line the winding road that takes you to Anstruther’s waterfront.
It’s a charming fishing village and overlooking the harbour are quaint restaurants and gift shops – handmade soap, whisky and fresh fish – it’s all on offer.
With this allure comes a melee of tourists who join us as we hop to each business, talking to them about how the campaigns have resonated with them here.
“When it’s very, very quiet, you’re talking maybe four months of the year with maybe a six or seven hours a day, that you’re not doing very much. And you can’t really drag people in the door.
“We need to bring people in. The villages needs money. You know, that’s that’s where the economy lies, I think, in the future.”
And when at the ballot box, Tom says it’ll be his shop at the forefront of his mind.
“I look for somebody that’s going to help businesses like myself, small businesses, and keep the high streets going, get people out,” he says.
This is one of the constituencies to have had its boundary lines redrawn.
Changes have now led to areas with higher levels of deprivation being added to the North East Fife seat.
Away from the picturesque coastline, further inland there are signs of a lack of investment and care.
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Chris adds: “There’s just so many promises and you think, you’ve had your time, can someone else do more for the country. We’re a very tourist-heavy area and we can’t afford to lose that. If Scotland loses its attraction, you know, we failed.”
The national narrative and the polls are having an impact on how he is feeling.
“I never thought I’d say it, but Labour are coming to mind, I think they’re going to do more for the country than the others.
“But who do you believe? There’s always promises. And when it comes down to how many are delivered, usually very few.”
We’ve met those across this constituency who intend to back Reform, SNP and Labour throughout the day.
A sign that even the most seemingly straightforward of seats is all to play for.
The list of candidates standing in North East Fife are:
Wes Streeting has urged voters not to hand “the matches back to the arsonists to finish the job” as he warned against complacency over polls predicting a Labour landslide.
Speaking to Sky News’s Sunday Morning With Trevor Phillips, the shadow health secretary stressed the choice at the election as he branded the Tory manifesto “Liz Truss’s budget on steroids” and raised the prospect of “a nightmare on Downing Street” if the governing party was returned.
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1:04
Conservatives: We’re fighting for every vote
Mr Streeting made his comments as fresh polls signalled a further grim outlook for Prime Minister Rishi Sunak, with one indicating the Conservatives on course to pick up just 72 seats.
Meanwhile, cabinet minister Mark Harper insisted the Tories were fighting for every vote, but repeated his party’s warning that a vote for Reform UK would give Labour a large majority and “a blank cheque” in office.
Mr Streeting said: “I just warn people, against this backdrop of breathtaking complacency in the media about the opinion polls, do not give the matches back to the arsonist to finish the job.”
He added: “Do people want to see Liz Truss’s mini budget on steroids, which is the Conservative manifesto, being delivered if there’s a nightmare on Downing Street on 5 July or do they want to see a stable economy with economic growth, shared prosperity, enable us to invest in our public services without clobbering working people with taxes, that’s the choice at this election.”
Despite the polls, Mr Harper told Phillips: “I’m still very much up for this fight.
“The Conservative Party across the country, led by the prime minister, is fighting for every vote.”
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He added: “But the polls do tell us one thing. They do show people that if people don’t vote Conservative and some of the people vote for the smaller parties, and Labour does end up with a very large majority, they’re going to have a blank check.
“They are trying very hard in this campaign not to spell out how they’re going to pay for any of their promises. We know there is a black hole. We can have a debate about how big it is.
“We’ve said it’s going to be £2,000 for every family in the next over the parliament, but there’s definitely a black hole.
“We’ve set out the taxes that they might have to raise and they haven’t ruled them out.”
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Mr Harper went on: “I’d say very simply to those voters who are thinking about voting Reform who have voted Conservative – they want to see lower taxes, they want to see migration under control, if they vote Reform they’re going to get a Labour government with a large majority and it’s going to deliver the opposite of what they want.”
Mr Harper also insisted the election was “not about the past”.
He said: “Elections are about the future. They’re about the offer in front of us.”
In his interview with Phillips, Mr Streeting also indicated there could be greater spending increases for the NHS than committed to in the Labour manifesto, but stressed this could happen “only if the conditions allow”.
He was responding to analysis by the Nuffield Trust thinktank that suggested both Labour and Tory pledges on the NHS would leave the health service with lower annual funding increases than during the austerity era.
Seizing on this, a Tory spokesman said: “Labour’s manifesto is just window dressing for the election campaign and they are planning to spend and tax more than they are telling the public.”
The billionaire investor also intimated that any political aspirations Gensler had would amount to nothing due to the SEC chairman’s stance against cryptocurrency