From Investing.com: 2024-05-23 01:36:52

Nvidia’s quarterly revenue forecast exceeded expectations and the chipmaker announced a stock split, propelling shares to record highs of $1,005, a 5.9% increase in extended trading. The Santa Clara-based company’s stock has surged 90% this year amid rising AI optimism as it also raised its dividend and announced a stock split effective June 7. Nvidia’s robust earnings report could fuel a broader stock market rally, with shares of AI-related chipmakers AMD and Broadcom rising following the news. Demand for Nvidia’s high-end chips remains strong, with upcoming Blackwell AI chips set to ship this quarter. Taiwan Semiconductor Manufacturing is working to increase advanced packaging capacity to meet demand. Nvidia forecasts second-quarter revenue of $28 billion, a 262% increase year-over-year. Sales in the data center segment, its largest revenue source, grew 427% in the first quarter. Nvidia’s dominant market position in AI chips remains solid, with its high-performance chips and CUDA software framework giving it a competitive edge. The company reported a first-quarter adjusted gross margin of 78.9%, surpassing estimates of 77%. Going forward, Nvidia predicts a second-quarter adjusted gross margin of 75.5%, with analysts forecasting 75.8%.



Read more at Investing.com: Nvidia forecasts quarterly revenue above estimates, unveils stock split By Reuters