NVIDIA earnings report has come in impressive on financial results for the second quarter ending July 28, 2024, with revenues hitting $30 billion. This marks a 122% rise from the same period last year, underscoring the company’s leadership in the rapidly expanding AI chip market.
NVIDIA Earnings Report Come In 122% Higher
NVIDIA’s revenue for the quarter reached $30 billion, an increase of 122% compared to the previous year, alongside earnings per share of $0.68, which surged 168% year-over-year. These figures surpassed analysts’ projections, who expected $28.72 billion in revenue and earnings of $0.64 per share. The robust financial performance is driven by soaring demand for its AI products and services as more industries adopt AI technologies.
NVIDIA $NVDA JUST REPORTED EARNINGS
EPS of $0.68 beating expectations of $0.64
Revenue of $30B beating expectations of $28.7B pic.twitter.com/EH1zZHvVd8— Evan (@StockMKTNewz) August 28, 2024
Concurrently, the company has forecasted third-quarter revenue of $32.5 billion, again beating market expectations. The anticipation surrounding the launch of the Blackwell chips later this year is also a key driver of NVIDIA earnings outlook. These results and optimistic guidance suggest a strong trajectory for the firm in the AI chip market and the broader tech sector, making it a critical indicator of AI-driven growth.
Achieving its projected targets for the third and fourth quarters will be crucial for sustaining its upward momentum and positive investor sentiment. Despite these strong numbers in the NVIDIA earnings report, shares of the chip giant were down about 2.10% trading at $125.61 and 6.81% down in after-hours trading at $116.88.
Competition Intensifies in the Chip Industry
NVIDIA’s position is being challenged as the AI chip market becomes increasingly competitive. Startups like Cerebras, d-Matrix, and Groq are gaining traction, securing large investments to enhance their product offerings and compete in the AI hardware space.
Furthermore, major tech companies such as Microsoft, Meta, Amazon, Alphabet, and OpenAI, which currently rely on the firm’s forthcoming Blackwell processors, are also developing their own AI chips.
Despite NVIDIA earnings positive report, there is an investigation by the U.S. Department of Justice into potential anti-competitive practices. The inquiry centers on whether the company has leveraged its market dominance unfairly, which could lead to significant legal and regulatory implications. This investigation is being closely watched by investors, as any adverse findings could impact its market position and future strategies.
Potential Rally in AI-Related Cryptos
NVIDIA’s earnings report has sparked speculation about its potential impact on AI-related cryptocurrencies. Moreover, with Bitcoin slipping below $60,000 and reversing gains made after hints of imminent rate cuts by the Federal Reserve, the crypto market, especially AI coins, awaited earnings.
The strong demand for AI chips and technologies as a result could fuel interest in AI-focused blockchain projects, potentially leading to a rally in AI coins. In an earlier CoinGape report, for instance, Render is projected to be waiting for a potential rally especially with the positive report.
In addition, Fetch AI despite having been under selling pressure is also on the verge of a rally as per a recent analysis. Concurrently, despite the recent crypto market crash, most AI coins have been on an explosive rally with FET witnessing a 23% surge, Render 18% and Akash Network 10%.
The post NVIDIA Earnings Report Come In 122% Higher; AI Coins Rally Looming? appeared first on CoinGape.
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