Nvidia Corporation delivered its second quarter fiscal 2025 earnings report on Wednesday after the market closed, showing revenue of $30 billion and earnings per share of $0.64. Those figures beat analyst expectations, which pegged expected revenue at $28.7 billion.
Notably, Nvidia’s revenue grew 122% year-over-year, as demand for its processors continues to surge. The company also announced a $50 billion stock buyback.
“Nvidia achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI,” said Jensen Huang, Nvidia’s founder and CEO, in a statement.
The earnings report—which was perhaps one of the most anticipated earnings releases in recent memory—serves as a signal as to whether the artificial intelligence boom over the past year and a half should continue. Strong earnings, in this case, would be a signal that demand is still high, whereas weak earnings, conversely, could be a signal that the rally is petering out.
Given Nvidia’s strong earnings, that doesn’t appear to be the case.
Before the earnings report was released, Nvidia shares were trading down between 2% and 3% most of Wednesday, at around $125 per share. Year to date, however, shares are up around 160%; and over the past five years, up nearly 3,000%. That growth is largely due to the company’s processors, which have powered much of AI’s rise in popularity.
Despite the expectations-beating earnings numbers, Nvidia shares were trending down—stock prices were down more than 5% as of 4:30 p.m. ET.
While AI is expected to continue to power the economy in years ahead, analysts have recently warned that the hype is oversold, and that lofty valuations for AI-related stocks, such as Nvidia, were unjustifiably high. With Nvidia’s market cap having exceeded $3 trillion, it now comprises around 7% of the S&P 500. So, a big enough swing in its value—up or down—could have ramifications for the market at large, too. The same goes for other tech stocks, such as Apple, Microsoft, and Amazon, which likewise comprise significant percentages of the S&P 500.
Login to add comment
Other posts in this group
DoorDash is expanding its portable benefits pilot program to certain gig workers in Georgia starting next year, the food-delivery giant tells Fast Company.
Dashers (which is wha
To get from 0 to 60 in Formula 1 engine design while competing against organizations with much more experience, Red Bull Ford Powertrains will need extra help (and, no, that boost won’t come in th
I am not what you would call a finely tuned athletic machine. I am, if anything, an outdated lawnmower engine held together by duct tape and rust. So when I was offered the opportunity to let AI h
It’s hard to remember now, as you scroll through a thicket of porn bots, anti-trans activists, and AI slop
There’s been plenty of speculation about whether generative AI could replace—or perh
When Meta established its Oversight Board to adjudicate on decisions it made about removing content from its platforms in 2020, the goal was for the select group of individuals from the media, civ
When a devastating wildfire hit California in November 2018, a powerful CEO went on Twitter to ask how his company could help. That
