“Nvidia jumps after a major earnings beat as booming AI chip demand drives record data center sales and stronger guidance for the next quarter.”, — write: www.fxempire.com
What’s Driving the Surge in Sales? Data center revenue is the engine here — and it’s running hot. Nvidia posted $51.2 billion in the segment, a 66% jump from last year and well above the $49.09 billion analysts expected. Of that, $43 billion came from computing, essentially its GPUs. Networking chipped in $8.2 billion as customers keep building ever-larger clusters to handle AI workloads.
CEO Jensen Huang didn’t shy away from the strength, calling demand for the company’s next-gen Blackwell chips “off the charts.” Finance chief Colette Kress added that Blackwell Ultra — the second-generation version — has already become the top seller. Traders hear that and assume one thing: more orders are coming.
And for anyone worried that hyperscalers might start tapping the brakes, Huang threw cold water on those fears, noting that cloud GPUs are sold out. Buyers are still stepping in.
How Are Legacy Segments Holding Up? They’re not leading the story, but they’re adding fuel. Gaming revenue rose 30% to $4.3 billion. Professional visualization climbed 56% to $760 million, pushed along by interest in the newly launched DGX Spark AI desktop. Robotics and automotive brought in $592 million, up 32% from last year — another sign that Nvidia’s reach keeps widening.
The company also returned cash to shareholders with $12.5 billion in buybacks and $243 million in dividends, which never hurts sentiment.