Nvidia soars as Q2 earnings, guidance smash estimates; unveils $25B buyback
Justin Sullivan
Nvidia (NASDAQ:NVDA) shares soared nearly 10% in extended-hours trading on Wednesday after the semiconductor giant reported second-quarter results and guidance that smashed expectations.
For the period ending July 31, Nvidia (NVDA) earned an adjusted $2.70 per share on $13.51B in revenue. Included in that was $2.49B in gaming revenue, above the $2.38B estimate. Data center sales surged to a record $10.32B, well above the $7.98B that analysts were looking for.
Adjusted gross margins were 71.2%, above the 70.1% estimate.
A consensus of analysts were expecting the company to earn $2.09 per share on $11.09B in revenue.
Looking ahead, Nvidia (NVDA) said it expects third-quarter sales at $16B, plus or minus 2%, well above the $12.5B that analysts were expecting.
In a note to clients, Wedbush Securities analyst Dan Ives called it the "guidance heard around the world," citing the "jaw dropping demand."
"The October quarter guidance of $16 billion was well above $12.6 billion estimates and quickly rising whisper numbers on the Street and will be fuel in the engine to ignite a tech rally we see continuing into the rest of the year despite the recent pullback and Fed jitters (Jackson Hole meeting) in the air," Ives wrote.
In addition, the Jensen Huang-led company approved $25B in share buybacks and said it would continue to buy back stock this fiscal year.
Following the results, AMD (AMD), Broadcom (AVGO) and several other chipmakers rose in after-hours trading. Microsoft (MSFT) shares also rose on back of the strong results.
Nvidia will hold a conference call at 5 p.m. EST to discuss the results.

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