Nvidia Reports Record Revenue and Earnings Despite Lower Valuation
Nvidia reported record revenue of $96.2 billion for its fiscal second quarter, a 106% year-over-year increase driven by strong demand in AI computing solutions. Adjusted earnings per share rose to $2.22 from $1. The company's data center segment saw an impressive surge with revenues reaching $89 billion, up 117% compared to the previous year. Despite these robust financial results and a forecast for continued growth into Q3 with expected revenue of $108 billion, Nvidia’s valuation dropped below 27 times earnings — levels not seen since early 2019. This decline occurred even as profits more than doubled. The company also announced an expanded partnership with Amazon Web Services to deploy over three million GPUs across AWS's global infrastructure. Investors responded positively in after-hours trading, pushing shares up by over 4%. CEO Jensen Huang emphasized that AI has reached a significant inflection point and is now generating substantial revenue.
Tickers: $NVDA
Topics: AI data center revenue growth semiconductors