Nvidia reported record quarterly profits and sales, driven by surging demand for its AI chips. For the February-April period, profits rose to $58.3 billion—up 37% from the previous quarter and over 200% year-over-year. Revenue reached $81.6 billion, marking a 20% increase from the prior quarter and an 85% rise compared to the same period last year. The company anticipates $91 billion in revenue for the current quarter, exceeding most analysts’ predictions.
The data center segment led growth, with quarterly revenue soaring 92% year-over-year to $75.2 billion. Nvidia also announced an $80 billion stock buyback and increased its quarterly dividend from $0.01 to $0.25 per share. CEO Jensen Huang credited the results to AI’s growing utility, stating, “Demand is growing parabolically.”
Despite beating analyst expectations, Nvidia’s stock fell nearly 1.3% in after-hours trading, reflecting high market expectations. This has fueled discussions about whether the AI boom is leading to overvaluation in the tech sector. Analysts suggest that while Nvidia’s performance remains strong, the stock’s growth may not generate the excitement it once did, as expectations have now aligned with the company’s fundamentals. Some remain optimistic, citing the buyback and dividend as signs of strong cash flow, indicating a maturation phase for Nvidia’s growth narrative.
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