(AOF) – Nvidia did a flawless job last night, unveiling profits and prospects well above expectations, accompanied by a new $25 billion share buyback plan. On the stock market, the action of the chip specialist for artificial intelligence applications gained 2.27% to 481.86 dollars, with a capitalization of nearly 1,200 billion dollars. “What is even more impressive is the fact that Nvidia only meets about half of the demand, despite revenues having multiplied by more than 3 in 6 months” reacted Morgan Stanley.
The design office is positive on the value and it raised its target price from 500 dollars to 630 dollars like many other of its colleagues. JPMorgan increased its from 500 to 600 dollars, Bank of America from 550 to 650 dollars, Citi from 520 to 630 dollars…
Riding the boom in artificial intelligence, Nvidia saw its net profit soar 843% in the second quarter to $6.19 billion, or $2.48 per share. Adjusted earnings per share came in well above expectations at $2.70. The market was targeting $2.07.
The technology group benefited from activity well above expectations, knowing, however, that its revenue forecast had surprised in May by exceeding the consensus by more than 50%.
Its revenue soared 101% to $13.51 billion, significantly exceeding its target of $11 billion and the consensus of $11 billion.
Its data center products business saw revenue soar 141% to $10.32 billion, benefiting from strong demand for its A100/H100 products thanks to the rise of artificial intelligence.
Not only did earnings far exceed expectations, but Nvidia also unveiled a pleasant surprise in terms of its outlook. The group targets an average of 16 billion dollars in sales, where the market anticipated only 12.5 billion dollars. The adjusted gross margin should reach 72.5% against 71.2% in the second quarter.
This good news on the short-term outlook front is accompanied by upbeat comments from management on medium-term demand. “Our demand visibility extends into next year,” CFO Colette Kress said at the analyst press conference.
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