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NVIDIA Corporation (NVDA) Earnings Destroy Expectations

NVDA shares gained 2.6% after the bell

By Karl Utermohlen, InvestorPlace Writer


NVIDIA Corporation (NASDAQ:NVDA) unveiled its latest quarterly earnings results after the bell Thursday.

NVIDIA Corporation (NVDA)The company posted profit of $1.33 per share, which handily topped Wall Street’s consensus estimate of 95 cents per share, according to data compiled by FactSet. Revenue came in at $2.64 billion, topping analysts’ expectations of $2.37 billion and growing 32% year-over-year.

On the gaming front, Nvidia saw revenue pop 25% year-over-year to $1.56 billion, making up more than half of the company’s total revenue. Data center chips rose considerably, increasing 109% to $500 million.

The company’s revenue was also aided by its data center business, which saw its revenue skyrocket 175% year-over-year. There was a higher demand from large-scale customers working on artificial intelligence, according to Nvidia.

The demand for the company’s graphics chips linked to cryptocurrencies also soared as the price for bitcoin and ethereum have continued to gain traction. Nvidia also said it will increase its dividend from 14 cents to 15 cents per share.

The company had been leasing the land for its new headquarters in Santa Clara, California, and it announced that it was now buying the land for about $350 million. Its previous headquarters were in Wachovia.

“We had a great quarter across all of our growth drivers,” said CEO Jensen Huang in a statement during the company’s press release. “Industries across the world are accelerating their adoption of AI,” he added at the earnings call.

NVDA stock surged 2.6% after the bell Thursday.

Article printed from InvestorPlace Media, https://investorplace.com/2017/11/nvidia-corporation-nvda/.

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