Nvidia Shares Rise on Chipmaker’s Solid Earnings Report
Nvidia (NVDA) shares were rising after hours on Thursday after the chip making giant reported better-than-expected revenue and earnings, as well as strong guidance.
The stock was rising 5.36% to $168.77 a share, after having risen 0.38% in regular hours.
Earnings per share for the first quarter of Nvidia’s fiscal year 2020 came in at an adjusted 88 cents, beating Wall Street’s expectations of 81 cents. Revenue was $2.22 billion, slightly ahead of analysts’ estimates of $2.196 billion. Revenue and EPS saw year-over-year decreases of 30% and 57%, respectively, as the company works its way through excess inventory.
“NVIDIA is back on an upward trajectory,” said Jensen Huang, founder and CEO, in a statement. “We’ve returned to growth in gaming, with nearly 100 new GeForce Max-Q laptops shipping. And NVIDIA RTX has gained broad industry support, making ray tracing the standard for next-generation gaming.” Huang added, “Despite the near-term pause in demand from hyperscale customers, the application of AI continues to accelerate.”
Management guided for second quarter revenue of $2.55 billion “plus or minus 2%.” Analysts are looking for revenue for the current quarter of $2.537 billion.
The stock is up almost 18% in 2019 year to date.