Nvidia Corp. reported its first-quarter earnings for fiscal 2024 on Wednesday, with a stronger-than-expected guideline for the second quarter that drove shares up 25% in an after hours trading.
Earnings per share came in at $1.09, beating an estimate of 92 cents by Refinitive consensus. Meanwhile, the company recorded $7.19 billion in revenue vs. $6.52 billion expected.
However, the most surprising figure was not its EPS, but the management guideline that expected sales of about $11 billion in the current quarter, which is largely higher than estimates from Wall Street of $7.15 billion.
Share prices of Nvidia surged more than 100% prior to the announcement of its earnings on Wednesday, boosted by optimism on the company’s leading position in the market for artificial intelligence chips.
Jensen Huang, Chief Executive Officer of Nvidia, said the company saw surging demand for its data center products that used Nvidia’s chips to train and deploy AI applications like ChatGPT.
In an extended trading session of Wednesday, stock prices of Nvidia rose to $380.70 a share, up $75.32 or 24.66%.