Nvidia beats the analyst estimates for Q2 2023, posting a record $13.51 billion revenue against Refinitiv’s $11.22 billion revenue call.
Suggesting that the current quarter will grow 170% from the year-earlier period, Nvidia is optimistic about its data centre business. The companies saw revenues from selling A100 and H100 GPU cards, critical elements for running advanced technologies like Generative AI.
Nvidia Cashing on the AI Trend
Riding on the success of its GPUs, Nvidia recorded a grand revenue of $13.51 billion for the second quarter of 2023. This announcement pushed the company’s share price by 6% on Wednesday’s extended trading.
The Q2 2023 results doubled from $6.7 billion a year earlier and increased 88% from the prior period. Further, they have also surpassed the Refinitiv’s estimates of $11.22 billion. Nvidia expects the next quarter’s revenue to be around $16 billion, higher than the $12.61 billion forecast by Refinitiv.
Noting that sales in the current quarter will grow 170% from the year-earlier period, Nvidia’s finance chief, Colette Kress, cleared their stance on the American export bans to China. Many thought the new chip export restrictions would affect Nvidia’s supply to Chinese users, their biggest market.
But Kress assures that no the Biden government’s export rules won’t affect their business and underscores how valuable their products are to the global markets. Nvidia’s A100 and H100 AI chips are crucial in building new-age technologies like Generative AI, which are doing many things lately.
Further, these chips are heavily used in building data centres and cloud infrastructure from big techs like Alphabet, Amazon, and Meta. While Nvidia’s data centre is growing, the company is also making fair profits from its gaming GPUs, which consumers adore very much.
All these fortunes give it enough confidence to buy back more shares. Nvidia has already purchased $3.28 billion in shares during the quarter and is now eyeing $25 billion worth of share buybacks, as it received approval from its board of directors.
