Nvidia Q1 result beats Wall Street estimates on massive AI chip demand

Artificial intelligence chipmaker Nvidia earned $58.32 billion, or $2.39 per share, in the February-April period, up from $18.78 billion, or 76 cents per share, in the same period a year earlier

Artificial intelligence chipmaker Nvidia's quarterly results surpassed Wall Street's expectations once again, fuelled by massive demand for its high-end AI chips.

The company said Wednesday it earned $58.32 billion, or $2.39 per share, in the February-April period, up from $18.78 billion, or 76 cents per share, in the same period a year earlier. Excluding one-time items, Nvidia earned $1.76 per share.

Revenue jumped 85 per cent to $81.62 billion from $44.01 billion.

Analysts, on average, were expecting earnings of $1.75 per share and revenue of $78.91 billion, according to a poll by FactSet. Nvidia's results have exceeded the analyst projections that shape investors' perceptions since Nvidia's high-end chips emerged as AI's best building blocks three years ago.

 

"The buildout of AI factories - the largest infrastructure expansion in human history - is accelerating at extraordinary speed," said CEO Jensen Huang in a statement.

For the current quarter, Nvidia forecast revenue of about $91 billion. Analysts are forecasting $87.29 billion.

Shares of the Santa Clara, California-based company dipped slightly after-hours to $222.12 after closing at $223.47 in the regular trading session. As of Wednesday's close, Nvidia had a market value of $5.4 trillion.