Nvidia stock soars to record high, reports $13.5B in revenue for Q2
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Nvidia soared past sky-high expectations for its latest quarter, sending shares up more than 9.5% after hours.
By the numbers: The dominant AI chipmaker reported $13.5 billion in revenue for the second quarter, compared to $11.2 billion expected by Refinitiv.
- That's doubled from the $6.7 billion the company reported in the same quarter a year earlier, and an increase of nearly 90% from the prior period.
- Earnings rolled in at $2.70 a share, adjusted, versus $2.09 expected.
- For Q3, Nvidia said it expects revenue of about $16 billion, compared to $12.6 billion forecast.
Zoom out: Investors can't get enough of the stock.
- Nvidia mania has powered more than 10% of the market's rise through July.
- And the stock's gains are the biggest contributor to the Nasdaq 100's 36% rally this year.
💭 Our thought bubble, via Axios' Scott Rosenberg: Nvidia makes specialized processors that are fine-tuned to accelerate the calculations underlying ChatGPT and other generative AI applications. That has put the company at the white-hot center of the tech industry's new AI boom, and Silicon Valley is assuming demand will keep soaring.
Zoom in: The number of outstanding call option contracts — when investors are bullish about a stock — hit a high in August, as FOMO trades flood the market, WSJ notes.
- Of the 10 largest companies in the S&P 500, it's also the only stock for which the prices of call options are higher than put options, Bloomberg reports.
What they're saying: "It reminds me of what people were doing in Tesla," said Danny Kirsch, head of options at Piper Sandler told WSJ.
- "You can make 10 times your money in a day."
The big picture: Demand for Nvidia's AI chips won't be the problem going forward either — its own pace of production will be.
- Any supply constraints will have a large impact on other companies reliant on Nvidia chips to produce their products and services. Case in point: Supermicro's recent comments and the subsequent price moves of the two stocks.
