AI Tokens Rally On The Back Of Nvidia Q2 Results
By Kapil Rajyaguru
The second quarterly sales report from semiconductor behemoth Nvidia has blown analyst forecasts away. The excitement around artificial intelligence (AI) this year is driving the market ahead, with Nvidia at the forefront.
Artificial Intelligence (AI) related cryptocurrencies continued to hold sizable advances as Nvidia easily topped second quarter earnings estimates, proving the bullish AI trend is here to stay.
Nvidia reported Q2 revenue of $13.51 billion versus consensus estimates of $11.19 billion, according to FactSet data.
The company’s Q2 earnings per share was $2.70 beating estimates of $2.08. The chipmaker also said it expects third quarter revenue to be about $16 billion, plus or minus 2%, versus estimates of just $12.59 billion.
The firm reported data center revenue of $10.3 billion and gaming revenues of $2.5 billion. They both beat analyst forecasts of $8 billion and $2.4 billion, respectively.
Nvidia stock surged 9% on the day to reach an all-time high of $502.10 in after-hours trading. The company has had an epic year, with NVDA prices skyrocketing 250% since January 1.
The company also announced a new $25 billion share repurchase plan. This would enable it to buy back stock during its current fiscal year.
“Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia in a press release. “The race is on to adopt generative AI,” he added.
Tokens such as FET, GRT, INJ, RNDR and AGIX all were up more than 4% over the past 24 hours.
The Nvidia revenue report has been a bellwether for the ongoing AI hype cycle. It has pushed all types of tech companies, including crypto and blockchain firms, into the technology in hopes of cashing in.
Nvidia has become the main supplier of the generative AI industry. The company’s A100 and H100 AI chips are used to build and run AI applications, notably OpenAI’s ChatGPT.
Since November 2022, when OpenAI unleashed ChatGPT, tech giants such as Microsoft, Meta, and Google have jumped on the bandwagon with their own AI projects. Time will only tell who will win the race of adopting generative AI.
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