Nvidia second-quarter revenue up 122% from last year

Nvidia beat estimates in its second-quarter earnings on Wednesday, as focus grows on whether Wall Street can sustain its breakneck rally that has been mostly led by the AI chip maker and other tech stocks.
The AI bellwether reported revenue of $30.04 billion, compared with expectations of $29 billion. Revenue was up 122 per cent from a year ago and up 15 per cent from the previous quarter.
“Hopper demand remains strong and the anticipation for Blackwell is incredible,” Nvidia chief executive Jensen Huang said in a statement.
The company said it expects its third-quarter revenue to be $32.5 billion, plus or minus 2 per cent.
Nvidia also approved $50 billion in share buybacks.
It released its earnings after the closing bell. Shares in the company tumbled 2.1 per cent by the time trading closed.
Major US indexes closed lower after Nvidia’s earnings release. The S&P 500 and Nasdaq dropped 0.6 and 1.12 per cent, respectively. The Dow Jones fell 993.89 points, or 0.39 per cent.
Expectations were high heading into Wednesday’s earnings release. Nvidia’s results were expected to weigh heavily on other semiconductor companies, which have led this year’s stock market rally on AI optimism.
Nvidia holds 6.67 per cent of the S&P 500’s portfolio, meaning any large swings in the company’s share prices have an outsized effect on the market. It also has a more than 8 per cent waiting in the Nasdaq 100 components.
That weight came into fuller view this month during a global equities rout and Wall Street’s rebound. The S&P 500 recovered $4 trillion as US recession fears subsided within three weeks, with Nvidia shares climbing more than 28 per cent.
Also in focus were potential mentions of the Blackwell AI chips. Mr Huang said the chips would be shipped in the second quarter, but any delay in the Blackwell units could also leave traders feeling sour.
The chip maker’s shares have surged 161.45 per cent this year, leading an AI rally that has seen the S&P 500 reach record highs.
More to come …