Nvidia Reports $13.5 Billion In Revenue For Q2 As Stock Soars

(CTN News) – Revenue-wise, NVIDIA, the dominant AI chipmaker reported $13.5 billion for the second quarter, compared to Refinitiv’s forecast of $11.2 billion.

• This figure has almost doubled from the $6.7 billion the company reported in the same quarter a year ago, and represents an increase of nearly 90% from the previous quarter.

• This quarter’s earnings came in at $2.70 a share, adjusted, compared to the $2.09 expected.

• According to Nvidia, its revenue for Q3 will be around $16 billion, compared with a forecast of $12.6 billion.

The stock is in high demand among investors, who can’t get enough of it.

• Through the end of July, Nvidia has been responsible for more than 10% of the market’s rise.

• In fact, the stock has outperformed the Nasdaq 100 by 36% this year, largely because of its gains.

As summarized by Scott Rosenberg of Axios, here is our thought bubble: Nvidia manufactures specialized processors that are finely tuned to accelerate the calculations that underlie ChatGPT as well as other generative AI applications.

As a result, the company has become the white-hot center of the tech industry’s new AI boom, and Silicon Valley is assuming that the demand for its services will continue to rise.

As FOMO trades flood the market, the number of outstanding call option contracts – when investors are bullish about a certain stock – hit a high in August, according to the Wall Street Journal.

• Among the 10 largest companies in the S&P 500, it is also the only stock with a higher call option price than a put option price, according to Bloomberg, which is the highest among the 10 largest companies.

“It reminds me of what people were doing in Tesla,” said Danny Kirsch, who is the head of options at Piper Sandler, to the Wall Street Journal.

• It is possible to make ten times your money in a day if you work hard.”

The big picture: Demand for Nvidia’s AI chips won’t be a problem going forward either – the problem will be the pace at which it will be able to produce those chips.

• If there are any supply constraints, they will have a large impact on other companies who rely on Nvidia chips in order to produce their products and services.

• Taking Supermicro’s recent comments as an example, and the subsequent price movement of both stocks in the aftermath, are examples of this.

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